WATER UTILITIES PERFORMANCE REVIEW REPORT 2012/2013 REGIONAL WATER UTILITIES & DAWASCO

Transcription

1 WATER UTILITIES PERFORMANCE REVIEW REPORT 2012/2013 REGIONAL WATER UTILITIES & DAWASCO December 2013

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3 TABLE OF CONTENTS FOREWORD... iii ABBREVIATIONS AND ACRONYMS...iv DEFINITIONS OF KEY PERFORMANCE INDICATORS...v EXECUTIVE SUMMARY...vii PERFORMANCE HIGHLIGHTS... viii 1.0 INTRODUCTION Background Description of Utilities Methodology TECHNICAL OPERATIONS FOR WSSAs Water Abstraction Installed Water Production Capacities Water Production Water Demand Utilization of Water Supply Networks Water Mains Rehabilitation Rehabilitation of Water Service Connection Non-Revenue Water (NRW) Adequacy of Water Storage Capacities Utilization of Sewer Networks Performance of Sewer Networks Water Quality Monitoring Wastewater Quality Monitoring Water and Wastewater Quality Monitoring by EWURA BUSINESS AND COMMERCIAL OPERATIONS OF WSSAs Total Water connections Water Kiosk Connections...20 i

4 3.3 Metering Ratio Sewerage Connections Water Service Coverage Average Service Hours Sewerage Coverage Complaints and Complaints Resolution Staff per 1000 water and sewerage connections Billing and Revenue Collection Performance FINANCIAL OPERATIONS Revenue Generation Total Revenue Collection Trend Expenditure and Budget Control Cost Recovery COMPLIANCE WITH REGULATORY DIRECTIVES AND REQUIREMENTS Tariff Reviews and Compliance with Tariff Conditions Reporting Obligations PERFORMANCE RANKING Water Supply Performance Ranking Sewerage Services Performance Ranking KEY OBSERVATIONS AND RECOMMENDATIONS...55 APPENDICES...57 ii

5 FOREWORD Water Utilities Performance Report 2012/13: Regional Water Utilities and DAWASCO is the fifth report in a series of reports since 2008/09 that fulfils the requirement set in section 28(2) of the Water Supply and Sanitation Act, The report has been prepared by the Energy and Water Utilities Regulatory Authority (EWURA). This report analyses the performance of Regional WSSAs and DAWASCO during the year 2012/13 in comparison to the previous two years. Unlike the previous four reports in which the performance of 19 Regional WSSAs and DAWASCO was discussed, the 2012/13 report constitutes the performance analysis and benchmarking of 23 Regional WSSAs and DAWASCO. This is consequent to the fact that during 2012/13 Geita, Mpanda, Bariadi and Njombe towns were declared by the Prime Minister s Office Regional Administration and Local Government (PMORALG) to be Regional Headquarters of the newly formed Regions of Geita, Katavi, Simiyu and Njombe respectively. The report shows that most water utilities have shown improvement in metering ratio, number of water and sewerage connections, revenue collection, and staff per 1000 connections. However, the report unveils that management of Non-Revenue Water is still a challenge facing all water utilities. Also, the report shows that water and sewerage service coverage and reliability levels are still low and substantial investment is still required. I would like to congratulate water utilities that have emerged as good performers in various performance indicators described in this report. I also congratulate those utilities that have shown performance improvement as compared to their performance during the year 2011/12. Generally, performance achieved by the water utilities in most performance indicators has not reached the recommended performance benchmarks. Finally, I would like to thank the water utilities and the Ministry of Water for their input in making this report a success. It is my hope that this report will serve as a catalyst for water utilities to improve their performance. Haruna Masebu DIRECTOR GENERAL, December, 2013 iii

6 ABBREVIATIONS AND ACRONYMS BOD 5 COD DAWASCO DAWASA DSNP EWURA KASHWASA MajIs MoU MoW NA/na NBS NRW ph TBS WSSA WSDP Biochemical Oxygen Demand of wastewater during decomposition over 5days period Chemical Oxygen Demand Dar es Salaam Water and Sewerage Corporation Dar es Salaam Water and Sewerage Authority District, Small Towns and National Projects Energy and Water Utilities Regulatory Authority Kahama Shinyanga Water Supply Authority Water Utilities Information System Software Memorandum of Understanding Ministry of Water Not applicable National Bureau of Statistics Non-Revenue Water Potentiometric Hydrogen ion concentration - is a measure of the acidity or alkalinity of a solution Tanzania Bureau of Standards Water Supply and Sanitation Authority Water Sector Development Program Measurement Units and Symbols km km 2 kwh/m 3 m m 3 m 3 /day nr/km/year kilometre square kilometre Kilowatt hours per cubic metre metre cubic metre cubic metre per day number per kilometer per year % per cent TZS Tanzania Shillings iv

7 DEFINITIONS OF KEY PERFORMANCE INDICATORS NO. INDICATOR DEFINITION UNIT WATER SUPPLY Accounts Receivable This is the money owed to water utilities by their customers months expressed as the average duration in months the customers take to pay their bills. It is calculated by taking the total accounts receivable during the year divided by the total water and sewerage sales (bills) multiplied by 12. Administration costs per Total Administration costs (TZS) / total amount of water TZS/m 3 m 3 of water produced. Average hours of supply. Energy consumption Mains failures Metering Ratio Number of public water kiosks Non-Revenue Water (NRW) Operating Ratio Overall Efficiency Indicator (OEI) Personnel expenditure per m 3 of water produced. Personnel expenditure as % of current collection from water and sewerage bills Personnel/1000 (W&S) connections Proportion of population living within the area with water network produced (m 3 ). Are the hours per day a consumer can draw drinking water from the tap at his household connection or the public stand post. The best practice is 24 hours. Energy consumption during the assessment period / Total amount of water produced (m 3 ). Number of mains (a pipe of diameter 2 ) failures leading into service interruption in a year / total mains length. The percentage of number of water connections that have operating water meters to the total number of active water connections. Total number of active water kiosks at the end of the financial year. Is the amount of water that a water utility produces (or purchases from other utilities) minus the amount that is sold to consumers, presented as a percentage of water produced and/or purchased. The recommended value is less than 20%. Ratio of operating costs to operating revenues. Operational costs include all the expenses together with depreciation and interests costs (but no debt service payments). Sound financial management requires that this ratio should be less than 1. Is given as actual collection expressed as a percentage of the value of total water production. OEI= Collection Efficiency x (1-NRW) Is the ratio of total personnel expenditures (TZS) to the total amount of water produced (m 3 ) Total personnel expenditures (TZS) expressed as a percentage of the total collection from current water and sewerage bills plus collections from other water and sewerage related services (excluding grants and subsidies). This indicator measures the staffing level and is calculated as the ratio of total personnel to total water and sewerage connections. The proportion of population living within the area with water network expressed as a percentage. It is obtained by dividing the population living within 200 meters from the water distribution pipe by the total population living in the service area. Hours kwh/m 3 nr/km/year (%) Number (%) Ratio (%) TZS/m 3 (%) personnel/ 1000 Connections (%) v

8 NO. INDICATOR DEFINITION UNIT Proportion of population served with water Is the percentage of population served to the total (%) population living in the service area. The population served is arrived at by adding the following; (i) the number of domestic connections multiplied by the average members using that connection. (ii) the number of public stand posts and/or kiosks is multiplied by the average number of the population served by public stand posts and/or kiosks (iii) the number of population living in residential institutions, Revenue Collection Efficiency Revenue per staff per year Treated water storage capacity Working Ratio Water Mains rehabilitation Water service connections rehabilitation Water quality compliance SEWERAGE 1. Proportion of population connected to the sewerage service Sewer blockages Wastewater quality compliance industrial and commercial complexes. This indicator measures the ratio of collection to the billings during the year calculated as the Amount of Revenues Collected /Amount Billed x 100. Total Revenue per year / total number of staff. Total capacity of treated water storage (private storage tanks excluded) / average daily consumption x 24hours. This is the ratio of operational expenses / operational revenue. The operational expenses do not include depreciation, interest and debt service. Sound financial management requires that this ratio should be well below 1. Length of mains (a pipe of diameter 2 ) rehabilitated during the year / total length of mains x 100. Number of service connections replaced or rehabilitated during the year / total number of connections x 100. This indicator measures the % of the water samples that pass particular water quality tests for potability = Total Number of Samples Passed / Total Number of Samples Tested x 100. Is the percentage of population served with sewerage service to the total population living in the service area. The population served is arrived at by adding the following; (i) the number of domestic sewerage connections multiplied by the average members using that connection. (ii) the number of people living in residential institutions, industrial and commercial complexes that are connected with sewerage services. Number of sewer blockages in a year / total length of sewer network. This indicator measures the % of the sewerage effluent samples that pass particular quality tests as per Tanzanian sewage quality standards: Total Number of Samples Passed / Total Number of Samples Tested). (%) TZS/Staff Hours Ratio (%) (%) (%) (%) nr/km of sewers/ year (%) vi

9 EXECUTIVE SUMMARY This is the fifth water utilities performance review report to be prepared by EWURA since 2008/09. Unlike the previous four reports in which the performance of 19 Regional WSSAs and DAWASCO was discussed, the 2012/13 report constitutes the performance analysis and benchmarking of 23 Regional WSSAs and DAWASCO. This is consequent to the fact that during 2012/13 Geita, Mpanda, Bariadi and Njombe towns were declared by the Prime Minister s Office Regional Administration and Local Government (PMORALG) to be Regional Headquarters of the newly formed Regions of Geita, Katavi, Simiyu and Njombe respectively. Preparation of this report involved compilation, analysis and verification of data and information that was submitted by the Regional WSSAs and DAWASCO through monthly MajIs reports, annual performance reports, draft financial statements as wells as other reports submitted to EWURA in compliance with regulatory directives. The report shows that most Regional WSSAs have shown improvement in metering ratio, number of water and sewerage connections, revenue collection, working ratio and staff per 1000 connections. On the other hand, the report shows that for all water utilities, the overall increase in water demand has been higher than the overall increase in water production. The report also shows that the overall average service hours have declined as a result of insufficient water production. Further, Non-Revenue Water (NRW) has continued to be a challenge facing all Regional WSSAs and DAWASCO as none of the utilities has managed to achieve the recommended best practice of 20% or less. Furthermore, personnel costs as percentage of revenue collection for Regional WSSAs has been high above the 30% limit stipulated in the MoU between WSSAs and the Ministry of Water. The report also shows the results of the performance assessment which has considered benchmarking of Regional WSSAs with best performance, Regional WSSAs compliance with MoU performance targets and regulatory directives. Tanga WSSA has emerged the best performer in the provision of water supply services, while Moshi WSSA is the best performer in the provision of sewerage services. The least performer in the provision of water supply services is Lindi WSSA, while the least performer in the provision of sewerage services is Arusha WSSA. In the end, the report shows that diminishing water sources, high NRW, low water service coverage and high personnel costs as key issues to be addressed. The corresponding recommendations and responsible institutions for addressing the key issues are also provided. vii

10 PERFORMANCE HIGHLIGHTS This section provides an overview of performance of Regional WSSAs and DAWASCO in the light of selected technical, business, commercial and financial performance indicators. The discussion intends to provide a summary of the performance of Regional WSSAs and DAWASCO over the past three years (2010/11 to 2012/13). a) Insufficient Water Production Over the three years period, total water production for Regional WSSAs increased from million m 3 in 2010/11 to million m 3 in 2012/13. While the increase in water production over the same period has been only 7%, the corresponding increase in water demand has been 16%. In addition, over the same period, production to demand ratio has never exceeded 61%. On the other hand, DAWASCO s water production increased by only 2% over the three years period. It is also worth noting that DAWASCO s water production over the same period has not been more than 53% of water demand. b) Decreasing water service coverage Population directly served Population directly served with water for Regional WSSAs experienced a fluctuating trend during the three years period whereby there has been an increase from an average of 62.3% in 2010/11 to 66.3% in 2011/12 and decreased to 65.9% in 2012/13. The overall decrease in 2012/13 is a result of the review of population data as well as the low water service coverage in the utilities operating in the four new regional headquarters. During the reporting period, coverage figures have been computed based on the data from the 2012 population and housing census published by the National Bureau of Statistics (NBS). viii

11 Review of population data has affected most of the WSSAs which reduced their coverage figures reported in 2011/12. Over the same period, the proportion of population directly served with water in DAWASCO operational area has decreased from 51.3% to 40.7% over the three year period. DAWASCO s coverage decrease during 2012/13 is a result of review of population data as per 2012 Census results as well as a decrease in the number of water connections after removing from the database customers without water services. Population living in area with Water Network Population living in area with water network has also observed a fluctuating trend by increasing from 80.9% in 2010/11 to 83.7% in 2011/12 and decreasing to 80.1% in 2012/13 respectively. Similarly, this indicator was affected by the revised population data as well the low water service coverage figures in the four utilities operating in the four new regional headquarters. Due to revision of total population data, the proportion of population living in area with water network has decreased in the WSSAs of Morogoro, Mtwara, Dodoma, Tabora, Songea, Shinyanga, Singida and Sumbawanga. In the DAWASCO s service area, the proportion of population living in area with water network has also decreased from 67.5% that was reported in 2010/11 and 2011/12 to 44.9% during the reporting period due to the revision of the population data. c) Increasing Metering Ratio During the reporting period, metering ratio for Regional WSSAs based on the total water connections increased from 74.6% reported in 2010/11 to 91%, and from 80.6% to 87% for DAWASCO, over the same period. However, in this year s report metering ratio has been computed based on the active water connections instead of total connections as in the previous years. This was due to observation made by the water utilities that most of the inactive water customers remain unoperational for more than a year and whenever they become active, they are metered. In view of the foregoing, the average metering ratio for Regional WSSAs increased from 74.6% in 2010/11 to 96.6% in 2012/13 and for DAWASCO, metering ratio has also increased from 80.6% to 93.6% over the same period. ix

12 d) High Non-Revenue Water (NRW) Generally, Non-Revenue Water (%) is still high compared to the recommended best practice of at most 20%. For regional WSSAs there has been a fluctuating trend whereby NRW has increased from 34.2% in 2010/11 to 36.3% in 2011/12 and thereafter observing a slight decrease to 35.6% in 2012/13. For DAWASCO, there was a slight improvement in NRW during 2011/12 but the situation has worsened in 2012/13 whereby NRW escalated from 49.8% in 2011/12 to 55.5%. So far, none of the water utilities has been able to reduce NRW to the recommended limit of 20%. e) Decreasing Service Hours There has been a continuous decrease in service hours for Regional WSSAs over the past three years. Overall average service hours have decreased from 17.1 in 2010/11 to 14.9 in 2012/13. In addition, the same indicator has not improved in the DAWASCO s service area as average hours of service remained at 8 since 2010/11. Nevertheless, in 2012/13 Iringa WSSA has reported 24 hours of water service availability, due to the utilization of the recently commissioned water production and distribution infrastructure. f) Increasing Water Connections The total number of water connections for Regional WSSAs has increased from 279,413 in 2010/11 to 320,965 in 2012/13 which is equivalent to a 12% increase over the three years period. For DAWASCO, the trend of the total water connections has been fluctuating. During 2012/13 DAWASCO reported a reduction of about 1,124 water connections. DAWASCO clarified that this trend is a result of removal from the database customers who had no water services. x

13 g) Increasing Sewerage Connections Only 10 Regional WSSAs provide sewerage services. The corresponding total number of sewerage connections has been increasing over three years and reached 22,055 in 2012/13 from 19,227 recorded in 2010/11. The pace of the increase in number of sewerage connections is equivalent to an annual increase of 943 connections which is approximately an average of 94 connections per utility per annum. On the other hand, DAWASCO s total number of sewerage connections was reported to fluctuate. During 2012/13 there has been a 24% decrease from 21,742 in 2011/12 to 16,539 due to database cleanup and demolishing of buildings with sewerage connections. h) Improving Staff Productivity For Regional WSSAs, Staff per 1000 total water and sewerage connections improved from an overall average of 8.4 in 2010/11 to 6.7 in 2012/13. For DAWASCO, staff per 1000 total water and sewerage connections improved from 12.4 in 2010/11 to 5.8 in 2011/12 but thereafter worsened to 6.2 in 2012/13. The increase in this ratio for DAWASCO is attributed to the increase in number of staff from 894 in 2011/12 to 943 in 2012/13 while the number of water and sewerage connections decreased during the same period. i) Increasing Average Water Tariff Over the past three years, average water tariff approved by EWURA increased from TZS 516.4/m3 in 2010/11 to TZS 664.5/m3 in 2012/13. For DAWASCO, the average customer tariff increased from TZS 850/m3 in 2010/11 to TZS 1,119/m3 in 2012/13. xi

14 j) Increasing Revenue Collection There has been a continuous increase in revenue collection from water supply and sewerage services over the past three years. For Regional WSSAs, revenue collection increased from TZS billion in 2010/11 to TZS billion in 2012/13 which is equivalent to a 45% increase. Similarly, DAWASCO s revenue collection increased by 40% from TZS billion in 2010/11 to TZS in 2012/13. k) Improving Revenue Collection Efficiency Revenue collection efficiency for Regional WSSAs has on average improved from 70.3% in 2010/11 to 89.2% in 2012/13 while for DAWASCO revenue collection efficiency improved from 77.4% in 2010/11 to 78.3% in 2011/12 and then decreased to 76.9% in 2012/13. l) Low Overall Efficiency The Overall Efficiency Indicator (OEI) compares the volume of water for which the utility collects revenue to the total volume it produces. For the Regional WSSAs, OEI has improved from 46.7% in 2010/11 to 57% during the reporting period. With regard to DAWASCO, there was a slight increase in OEI from 38.8% in 2010/11 to 39.4% in 2011/12 but thereafter declining to 34.2% in 2013/14 as the performance of both collection efficiency and non-revenue water worsened. The recommended OEI should be more than 76% by considering NRW of 20% and collection efficiency of 95%. xii

15 m) Deteriorating Working Ratio This being a ratio of operational expenses to operational revenue which signifies the extent to which utilities have managed to cover operational expenses (excluding depreciation). For the past three years the performance in terms of working ratio has worsened in the Regional WSSAs with an increasing trend from 0.9 in 2010/11 to 1.1 in 2012/13. DAWASCO s working ratio has improved from 1.14 in 2010/11 to 1.06 in 2011/12 and deteriorated to 1.2 in 2012/13. n) Deteriorating Operating Ratio Operating ratio measures the extent of cost recovery of the water utilities. Operating ratio for Regional WSSAs has deteriorated over the past three years from 1.1 in 2010/11 to 1.4 in 2012/13. For DAWASCO, there has been an operating ratio improvement from 1.2 in 2010/11 to 1.1 in 2011/12 but thereafter declining to 1.2 in 2012/13. o) DAWASCO s Compliance with Lease Performance Targets DAWASCO is operating under the Lease Contract with DAWASA in which there are performance targets that are subject to financial penalties in cases of noncompliance. The overall evaluation of DAWASCO s performance in compliance with the targets shows that DAWASCO failed to comply with sewerage effluent quality, customer metering and reduction of water losses, which comprise 41% of the targets. p) Compliance with Regulatory Directives and Requirements Regulatory directives and requirements that were evaluated during the reporting period include reporting requirements, compliance with tariff conditions and compliance with the targets set on MoU between Regional WSSAs and the Ministry of Water. Reporting obligations: It is the obligation of all utilities to submit their monthly reports electronically through a web-based software called MajIs by the 15th day of the following reporting month. Furthermore, utilities were required to submit draft Annual Reports and draft Financial Statements as of xiii

16 30th September, All WSSAs submitted their monthly MajIs reports on time except DAWASCO, Songea WSSA, Lindi WSSA and the new Regional WSSAs. Only 6 Regional WSSAs managed to timely submit both of their draft reports; these are Arusha, Dodoma, Iringa, Shinyanga, Tanga and Babati WSSAs. Tariff conditions compliance: Tariff approvals were accompanied by conditions which were supposed to be fulfilled by the water utilities. A total of 60 conditions ought to have been complied with by the utilities during the reported period. However, the average compliance to the tariff conditions were evaluated to be 59.4% having declined from 67% achieved in 2011/12. Low scores were mainly attributed to the late submission of the reports and delay to implement investment projects earmarked for implementation using own funds. xiv

17 1.0 INTRODUCTION 1.1 Background The Water Utilities Performance Review Report 2012/13 is the fifth in a series of such reports issued by EWURA. Unlike the previous four reports in which the performance of 19 Regional WSSAs and DAWASCO was discussed, the 2012/13 report constitutes the performance analysis and benchmarking of 23 Regional WSSAs and DAWASCO. This is consequent to the fact that during 2012/13 Geita, Mpanda, Bariadi and Njombe towns were declared by the Prime Minister s Office Regional Administration and Local Government (PMORALG) to be Regional Headquarters of the newly formed Regions of Geita, Katavi, Simiyu and Njombe respectively. The service areas of these four utilities were previously District headquarters and were included in the previous performance reports for District, Small Towns and National Projects WSSAs. Therefore, in order to facilitate trend analysis, the 2010/11 and 2011/12 data were updated to include the performance of the four new Regional WSSAs. As a result, Regional WSSAs average and total figures for the 2010/11 and 2011/12 that were reported in the previous performance reports were reinstated in this report to reflect the changes. In this report, the performance of the 23 Regional WSSAs and DAWASCO is analyzed based on 25 performance indicators illustrated through charts and tables. For each performance indicator a brief commentary is provided to highlight trends, the overall and specific performance of the utilities as well as reasons for notable trends. The commentary for DAWASCO is provided separately from the 23 Regional WSSAs because, while regional WSSAs operate under the Water Supply and Sanitation Act, 2009 (Cap 272), DAWASCO is operating under DAWASA Act, Cap 273. However, it has to be noted that the commentary is just a short explanation and is not intended to be a comprehensive description of every indicator. This report is a mirror where utilities can identify their strengths and weaknesses as well as compare themselves with their peers within the country. Further, the report presents to the Ministry of Water (MoW), Development Partners and other stakeholders an overview of the current status of urban water supply and sewerage services in the country. Furthermore, this report provides information and data pertinent to investment decisions in the sector. The report also offers an opportunity to customers of the respective water utilities to compare the performance of their service providers to those of other providers in the country and hence challenge them. 1.2 Description of Utilities WSSAs are autonomous public water utilities established by the Water Supply and Sanitation Act, Distinctively, DAWASA was established by the DAWASA Act, Cap DAWASA is the owner of the assets for water supply and sewerage services in DAWASA designated area which include Dar es Salaam region and part of Kibaha and Bagamoyo Districts. It is responsible for planning, procurement and implementation of strategic capital works. DAWASCO is a public corporation responsible for providing water supply and sewerage services in the DAWASA designated area through a lease contract. Regional WSSAs, DAWASA and DAWASCO possess Water Supply and Sewerage Licenses issued by EWURA. In addition, the Ministry of Water has graded WSSAs into three categories, namely Category A, B and C on the basis of their financial capabilities. Table 1.1 below provides a list of water utilities discussed in this report. 1

18 Table 1.1: List of Utilities included in the Report SN Name of Utility Category Services Provided SN Name of Utility Category Services Provided 1 Arusha A Water and Sewerage 13 Tabora A Water and Sewerage 2 DAWASCO A Water and Sewerage 14 Tanga A Water and Sewerage 3 Dodoma A Water and 15 Bukoba B Water Sewerage 4 Iringa A Water and 16 Kigoma B Water Sewerage 5 Mbeya A Water and 17 Singida B Water Sewerage 6 Morogoro A Water and 18 Sumbawanga B Water Sewerage 7 Moshi A Water and 19 Babati C Water Sewerage 8 Mtwara A Water 20 Lindi C Water 9 Musoma A Water 21 Bariadi C Water 10 Mwanza A Water and 22 Geita C Water Sewerage 11 Shinyanga A Water 23 Mpanda C Water 12 Songea A Water and Sewerage 24 Njombe C Water Key to Category: Category A: Category B: Category C: Water utilities that financially meet all their annual costs for Operation and Maintenance (O&M) including staff costs, energy costs and some contributions to investment. Water utilities that financially meet their O&M costs and staffs cost including part of energy costs. These utilities receive Government subsidies to cover the remaining part of energy costs. Water utilities that financially contribute to their O&M costs and receive Government subsidies to cover part of energy costs and staff costs. 1.3 Methodology Preparation of this report involved compilation, analysis and verification of data and information. The data and information was submitted by the Regional WSSAs and DAWASCO through monthly MajIs reports, annual performance reports and draft financial statements. Other reports were submitted to EWURA in compliance with regulatory directives. The validity of the data and information used to prepare this report was checked through the following process: a) Verifying the submitted data and information based on the data and information obtained from regular inspection; b) Seeking clarification from utilities in cases where the data showed unusual trends as compared to previous reports or where the data or information seemed to be unrealistic, inconsistent or outright incorrect; and 2

19 c) Inviting all Managing Directors/CEOs of Regional WSSAs, DAWASA and DAWASCO to a face to face workshop to discuss and confirm the data and information received prior to publication. 2.0 TECHNICAL OPERATIONS FOR WSSAs This section makes technical analysis of the entire cycle of water and sewerage operations of the utility from water abstraction to sewerage disposal. 2.1 Water Abstraction Boreholes, springs, dams, lakes and rivers are the major types of water sources for the Regional WSSAs. In 2012/13 the total water abstraction amounted to 133Million m 3 which is an increase of about 5% from 126Million m 3 abstracted in 2011/12 as shown in Appendix 2; Tables A2.1 (a) and Table A2.1 (b). Generally, there has been an increasing trend in the amount of water abstracted over the past three years. Most regional utilities have reported an increase in water abstraction mainly due to the completion of water projects which were ongoing in various WSSAs. During the reporting period, there was an increase in the amount of water abstraction from all types of water sources. Moreover, Figure 2.1: Water abstraction from different sources there has been a substantial increase in the amount of water abstracted from dams and rivers which increased by 13% and 14%, respectively. Nevertheless, abstraction from the lakes continued to be the main source of water supply in the Regional WSSAs, followed by springs and dams. The highest amount of water abstraction in all the Regional WSSAs was reported by Mwanza WSSA, while the lowest was reported by Geita WSSA. Morogoro WSSA reported the highest increase in the amount of water abstraction in 2012/13, while Mpanda WSSA reported the highest decrease. The decrease in water abstraction for Mpanda WSSA was due to electricity disconnection to their boreholes for about 2 months due to non-payment of electricity bills. During the period under review, DAWASCO abstracted Million m 3 of water from its sources which is almost the same amount as that reported in the previous year (i.e mill m 3 ). DAWASCO continued to depend on Ruvu River as its main water source, which contributes about 95% of its total water abstraction. Details of the DAWASCO s water abstraction volumes and the three years trends are presented in Appendix 2: Table A2.1b. 2.2 Installed Water Production Capacities By the end of financial year 2012/13, the total installed water production capacity for the 23 Regional WSSAs was 204Million m 3. This is a slight increase of about 0.74% in the overall installed capacity compared to that reported in 2011/12. The detailed trend of installed water production capacities for all the WSSAs is shown in Appendix 2: Table A2.2. A decrease in installed water production capacity was reported by Arusha, Musoma and Kigoma WSSAs. Musoma and Kigoma WSSAs reported significant decreases in installed water production capacity of 41% and 33%, respectively and Arusha WSSA reported a slight 3

20 decrease of 2%. The significant decrease in installed water production capacity for Musoma WSSA was reported to be due to relocation of one of its water abstraction pumps to a booster station, while Kigoma WSSA reported a breakdown of one of its water abstraction pumps. The slight decrease for Arusha WSSA was due to the abandonment of some of its boreholes which dried up. During the reporting period, Babati, Lindi and Singida WSSAs reported a significant increase in their installed water production capacities as compared to the year 2011/12. Increase in installed water production capacity was 134% for Babati WSSA, 331% for Lindi WSSA and 111% for Singida WSSA. This increase is related to the completion of WSDP water projects in the respective utilities which included improvement of water production infrastructure. DAWASCO has maintained the total installed water production capacity at 102.1Million m 3 for the past three years. 2.3 Water Production The total volume of water produced by the Regional WSSAs has continued to increase over the past three years as detailed in Appendix 2: Table A2.2. Water production by the Regional WSSAs increased by 3% from a total of 123Million m 3 reported in 2011/12 to 127Million m 3 during the reporting period. DAWASCO increased its water production during the year by 4.6Million m 3 which is about 5% increase of the previous year s water production. Figure 2.2 below gives a graphical presentation from the water production trend over the past three years for all the Regional WSSAs and DAWASCO. Figure 2.2: Annual Water Production Trend Most of the Regional WSSAs and DAWASCO reported an increase in water production. The highest increase in volume of water produced for Regional WSSAs was reported by Mbeya WSSA which contributed more than a half of the total increase in water production by the Regional WSSAs. An increase in water production by Mbeya WSSA is reported to be mainly due to effective utilitization of the available installed water production capacity to meet the city s water demand. 4

21 Lindi WSSA also increased its water production significantly by 17% when compared to the previous year. This was attributed to the construction of two boreholes under WSDP. Other utilities which have substantially increased their water production during the reporting period and their percentage increase in brackets include WSSAs of Bukoba (10%), Babati (8%), Tabora (7%), Dodoma (7%), Shinyanga (6%), and Arusha (7%). Except for Shinyanga WSSA which increased its water production due to effective utilization of its installed water production capacity, the increase in water production in the remaining utilities was mainly due to completed water projects. It is worth noting that although there is an overall increase in water production during the reporting period, the overall water production for Category B&C utilities has slightly decreased. Mpanda WSSA recorded a significant decrease of 23% in its water production when compared to the previous year. The decrease in water production for Mpanda WSSA was due to electricity disconnection for about 2 months to its boreholes due to non-payment of electricity bills. Other utilities which recorded decrease in the volume of water produced in 2012/13 include Morogoro, Kigoma and Moshi WSSAs. The decrease in water production by Morogoro WSSA was due to review of the water production estimation following re-assessment of the water production pumps capacities. For Kigoma WSSA, there was a breakdown in one of its water production pumps, and for Moshi WSSA there was a decline of water discharge from one of its spring sources. However, the decrease of water production in the aforementioned utilities is insignificant when compared to their annual volume of water production. Table 2.1: DAWASCO's Water Production Annual Water Production (Million m3/year) Source 2010/ / /13 Lower Ruvu Upper Ruvu Mtoni Boreholes TOTAL DAWASCO continued to depend mainly on its Lower Ruvu source. Table 2.1 shows the three years trend of DAWASCO s water production from its four production plants. It is worth noting that during the year under review, DAWASCO has increased the volume of its water production despite the fact that the installed water production capacity is almost the same as in the previous year. 2.4 Water Demand During the year 2012/13, the total water demand for 23 Regional WSSAs was 226.7Million m 3. The detailed trend for the WSSAs water demand is as presented in Appendix 2: Table A2.2. The total water demand for the Regional WSSAs is estimated to have increased by 2% when compared to the previous year s water demand. Most of the Regional WSSAs have revised their water demand data to be consistent with the population census data. Njombe WSSA did not review its water demand for 2012/13. During the reporting year, DAWASCO reported an annual water demand of 189.8million m 3, which increased from 181million m 3 reported in the previous year. 5

22 2.4.1 Comparison of Water Demand, Installed Capacity and Water Production Water demands in most of the Regional WSSAs and DAWASCO surpass their installed water production capacity as well as their actual water production. Also, neither of the Regional WSSAs nor DAWASCO has been able to fully utilize the available water production capacity. Also none of the utility has been able to fully satisfy the water demand of their respective service areas during the reporting year. The total water produced by the Regional WSSAs was enough to cater for only 56% of the total water demand, whereby only 63% of the total installed water production capacity was utilized. Even if the total installed water production capacity could have been fully utilized by the Regional WSSAs, it could only be able to cater for 90% of the total water demand. For the case of DAWASCO, a similar trend was observed. About 92% of the installed water production capacity was utilized by DAWASCO, which was sufficient to cater for only 50% of the water demand. These observations show that Regional WSSAs as well as DAWASCO need to have professional investment planning and monitoring development of water infrastructure. Figure 2.3 below gives a graphical presentation of the comparison between the water production, demand and installed water production capacity for the Regional WSSAs and DAWASCO. Figure 2.3: Comparison of Water Demand, Installed Capacity and Water Production Installed water production capacity for Mbeya, Tanga, Iringa, Shinyanga, Bukoba, and Babati WSSAs is higher than their water demand. These utilities need to focus on network expansion in order to utilize the available capacities. Shinyanga WSSA s installed water production capacity has included the total production capacity from its own water source (the Ning hwa dam) and the bulk water purchase from the Kahama-Shinyanga Water Supply Authority (KASHWASA). 2.5 Utilization of Water Supply Networks Water supply network utilization is assessed in terms of number of connections in a kilometer length of the distribution network. During the reporting period, Regional WSSAs had an average of 52 water connections in a kilometer length of the water network, decreasing from an average of 56 connections per kilometer reported in 2011/12. For DAWASCO, the average water connections 6

23 density decreased from 51 connections per kilometer reported in 2011/12 to 50 connections per kilometer in 2012/13. The detailed trends of water connection density for Regional WSSAs and DAWASCO are presented in Appendix 2: Table A2.3 and illustrated in Figure 2.4 below. Figure 2.4: Number of Water Connection per Km Length of Distribution Pipeline Arusha WSSA continued to have the highest water connection density in a kilometer of the water distribution network with 132 connections per kilometer of water distribution network. Meanwhile, Lindi WSSA remained with the lowest reported water connections density of 15 connections per kilometre. The significant drop in water connections density that was observed in Iringa during 2011/12 was due to the substantial increase in water distribution network following implementation of the water supply improvement project in the area. Babati WSSA recorded the highest decrease in its water connection density from 55.9 to 29.1 connections per km, Dodoma WSSA had the highest increase from 80.7 to 90.1 connections per km. While the increase observed in Babati WSSA was due to an increase in length of the distribution network, the decrease observed in Dodoma WSSA was due to substantial increase in number of water connections. DAWASCO had its water connection density decreasing from 50.8 connections per kilometer in 2011/12 to 49.7 connections per kilometer in 2012/13. This decrease is mainly due to the increase in network length by 31.9km and the decrease in number of water connections by 1,124 connections. 2.6 Water Mains Rehabilitation This performance indicator has always been reported with irregular trend and most WSSAs have been reporting very low water mains rehabilitation. The major reasons for this is that the water mains rehabilitation requires huge amount of investment which most utilities cannot afford using their own financial resources. Therefore, in most cases, mains rehabilitation is only reported by those utilities with externally financed water projects. During the reporting year, an average of only 1.5% of the total length of the water mains was rehabilitated by the Regional WSSAs. Previously, in 7

24 2011/12, Regional WSSAs rehabilitated 2.8% of the water mains. DAWASCO, on the other hand, did not report any rehabilitation during the reporting year. In 2011/12, DAWASCO reported to have rehabilitated 1.1% of its water mains. The detailed trends of the water mains rehabilitation over the past three years for Regional WSSAs and DAWASCO is as presented in Appendix 2: Table A2.19 and illustrated in Figure 2.5 below. Figure 2.5: Water Mains Rehabilitation While most of the Regional WSSAs reported very low values of percentage of water mains rehabilitation, Tabora, Sumbawanga, Iringa, Mtwara, Lindi and Geita WSSAs recorded significant values of water mains rehabilitation mainly due to the water supply projects that were implemented in those utilities. 2.7 Rehabilitation of Water Service Connection During the reporting period, Regional WSSAs have reported an increase in percentage of water service connections rehabilitated from 2.8% recorded in 2011/12 to 5.5%. Meanwhile, DAWASCO reported to have rehabilitated 10.9% of its water service connections during the reporting period, slightly increasing from 10.2% reported in 2011/12. It was reported that most of the water service connections rehabilitation was done by the respective utilities aimed at replacing poor quality pipes that were used by the customers to connect water to their premises. The details of the water service connections over the past three years for Regional WSSAs and DAWASCO are shown in Appendix 2: Table A2.19 and illustrated in Figure 2.6 below. 8

25 Figure 2.6: Water Service Connections Rehabilitation While most of the Regional WSSAs did not implement any water service connections rehabilitation, Morogoro, Iringa, Mtwara, Tabora, Njombe, and Lindi WSSAs have recorded significantly high water service connections rehabilitations during the reporting period. Most of the reported rehabilitations were part of the implementation of water supply projects in these areas. The rehabilitation of the water service connections done by DAWASCO was implemented as part of its operational activities funded internally. 2.8 Non-Revenue Water (NRW) Discussion in this section is in three-fold considering Non-Revenue Water (NRW) computed as percentage of water production, NRW computed as volume of water lost per kilometer of pipe network per day and NRW computed as volume of water lost per water connections per day. The results of the computations are presented in Appendix 2: Table A2.4. (a) NRW as a Percentage of Water Production (%) In this section NRW is assessed as the amount of water lost in percentage of water production. The MoU signed between the Ministry of Water and the Regional WSSA, requires the Regional WSSAs to achieve the NRW target of 20% or below. None of the Regional WSSAs have been able to achieve that target for the past three years. During the reporting period, Regional WSSAs reported a slight decrease on the average NRW from 36.3% reported in 2011/12 to 35.6%. DAWASCO, on the other hand reported an unsatisfactory increasing trend for NRW, whereby NRW increased from 49.8% in 2011/12 to 55.5%. The lease contract signed between DAWASA and DAWASCO requires DAWASCO to achieve a NRW target of 35% in 2012/13. Figure 2.7 below gives the graphical illustration of NRW trend by the Regional WSSAs and DAWASCO during the past three years. 9

26 Figure 2.7: Non-Revenue Water (as percentage of water production) The lowest NRW during the reporting period was 22% reported by Shinyanga WSSA. Previously in 2011/12, the lowest NRW was 25% which was reported by Tabora WSSA. Notably, during the reporting period, Tabora WSSA has reported an unsatisfactory substantial increase in its NRW which reached 32.7%. The increase was caused by improvement in measuring the actual billed volume of water after metering all the active water connections. Previously, Tabora WSSA over-estimated the volume of water consumed by its unmetered customers. The highest NRW for Regional WSSAs during the reporting period was 53% reported by Bukoba WSSA which was explained to be due to the estimation of billed volume of water consumed by unmetered customers. Previously in 2011/12, the highest NRW among the Regional WSSAs was 62.4% which was reported by Mpanda WSSA. Mpanda WSSA reported the highest decrease in NRW during the reporting period which dropped from 62.4% in 2011/12 to 49% in 2012/13. However, Mpanda have a very low metering ratio (13.5%), thus the reported water consumption is based on an estimation and may not necessarily represent the real situation. Further, some of the water production points of Mpanda WSSA are also unmetered, hence production volumes are also not very reliable. Mtwara WSSA reported the highest increase in NRW during the reporting period which increased from 29.9% in 2011/12 to 41.4% in 2012/13. Mtwara reported that the increase in NRW is due to high physical water losses caused by the pipe breaks caused by the road construction activities. It is worth commending the progressive improvement (decrease) of NRW over the three years period reported by Dodoma, Babati, Mwanza and Morogoro WSSAs as well as Kigoma WSSA, though the improvement is really very slow (decreasing only 0.1% of its NRW each year). However, the NRW reported by Morogoro WSSA is mainly an estimation, because not all of its customers are metered, and also there are no bulk water meters at the water sources. On the other hand, unsatisfactory increasing trend of NRW over the three years period was observed in Mtwara, Arusha, Mbeya and Lindi WSSAs. 10

27 Reduction of NRW continued to be a challenge to DAWASCO. During the reporting year, DAWASCO reported an increase in its NRW from 49.8% reported in 2011/12 to 55.5%. DAWASCO reported that the increase in NRW is mainly due to inaccuracy of the customers water meters, which under-records water consumptions data. (b) NRW in m 3 of water lost per km per day In this section NRW is assessed in terms of the amount of water lost in a kilometer length of the pipe network in one day (m 3 lost/km/day). This indicator enables a fair comparison of the utilities NRW by taking into consideration the varying water production volumes and pipe network lengths; these are then factored in when assessing utilities achievements in managing the water losses. On average, during the reporting period Regional WSSAs have reported a weighted average daily amount of water lost in a kilometer of distribution network of 21.09m 3, almost the same amount as 21.1m 3 which was reported in 2011/12, whereas DAWASCO reported an increase from 46.9m 3 to 54.4m 3 during the same period as presented in Appendix 2: Table A2.4 and illustrated in Figure 2.8 below. Figure 2.8: NRW in m 3 lost per km per day During the reporting period, Lindi WSSA had the lowest water loss of 3.8 m 3 in a kilometer length of the distribution network per day. Previously in 2011/12, the lowest water loss per kilometer length per day of the distribution network was 2.9 which was reported by Geita WSSA. Other Regional WSSAs which reported very low water loss per kilometer length of the distribution network include Geita and Bariadi WSSAs. But, these utilities also reported very low water production volumes, which may be the reason for their reported low water losses. Arusha WSSA continued to have the highest NRW (m 3 lost per km per day) which was 60.2m 3 of water per day in a kilometer length of the distribution network. Previously in 2011/12, Arusha WSSA had the highest volume of m 3 of water lost per km per day. The highest decrease of water loss per km per day during the reporting period was from 23.5m 3 to 20.8m 3 as reported by Mpanda WSSA; a decrease of about 14m 3 per km per day. But, again it should be noted that Mpanda has very low metering ratio, thus the reported volumes are mainly an estimation. 11

28 The highest increase of water loss per km per day during the reporting period was from 41.7m 3 to 51.7m 3 as reported by Bukoba WSSA; an increase of about 10m 3 of water loss per kilometer length of the distribution network. (c) The increase in daily water loss per kilometer length of the water distribution network in DAWASCO is mainly due to the overall increase in NRW reportedly to be mainly attributable to the inaccuracies of the water meters. NRW in volume of water lost per connection per day This indicator is intended to assess the amount of daily water loss in relation to the number of active water connections in the utility. During the reporting period, the Regional WSSA lost an average of 430 litres of water per connection in a day, increasing from 370 litres per connection per day reported in 2011/12. DAWASCO reported an increase on the average daily water loss per connection from 920 litres in 2011/12 to 1,170 litres during the reporting period. Figure 2.9 below gives the graphical presentation of the water loss per connection per day for water utilities during the past three years. Figure 2.9: NRW in volume of water lost per connection per day For two years consecutively, Shinyanga WSSA has remained to be the utility with the lowest amount of daily water loss per connection among the Regional WSSAs by reporting 130 litres of daily water loss per connection in 2012/13. Previously, in 2011/12, Shinyanga WSSA had the lowest volume of 180 litres of daily water loss per connection. The highest amount of daily water loss per connection among the Regional WSSAs was 770 litres which was reported by Kigoma WSSA. In the previous year, Mpanda WSSA had the highest amount of daily water loss per connection among Regional WSSAs of 990 litres. Nevertheless, during the reporting period, Iringa WSSAs has made commendable efforts to improve the situation which translated to be the second highest decrease in the daily water loss per connection among all Regional WSSAs after Mpanda WSSAs, which recorded the highest decrease of 350litres per connection per day. DAWASCO had the highest daily water loss per connection among all utilities which has increased by 250 litres when compared to the previous year s volume. 12

29 2.9 Adequacy of Water Storage Capacities In this section the adequacy of the water storage capacities of the Regional WSSAs is assessed in terms of the duration (in hours) at which the available water storage will satisfy the current daily water demand. It is recommended that the storage capacity should be able to satisfy the daily demand for at least 7 hours. The weighted average storage capacities, expressed in hours of storage, for the Regional WSSAs in 2012/13 was computed to be 9.4 hours, increasing from 8.1 hours in 2011/12. On the other hand, DAWASCO had a decrease in its storage capacity, expressed in hours of storage, from 4.1 hours in 2011/12 to 3.9 hours. The detailed trend on the storage capacities for the Regional WSSAs and DAWASCO is presented on Appendix 2: Table A2.3 and illustrated in Figure 2.10 below. Figure 2.10: Storage Capacities During the reporting period, Dodoma WSSA has increased its total storage volume by 6,700m 3 and achieved the highest storage capacity, expressed in hours of storage, of 35 hours among all the Regional WSSAs. In the previous year, Dodoma WSSA had also the highest storage capacity of 31.6 hours. On the other hand, Geita WSSA reported the lowest storage capacity, expressed in hours of storage, of 0.6 hours. The sharp increase in storage capacity that is observed in Singida WSSA during the reporting period, is the result of the completion of the ongoing water supply project which together with other activities, increased the total storage capacity for Singida WSSA by 5,500m 3. It should be noted that most of the Regional WSSAs have not achieved the minimum recommended duration for the storage capacity of 7 hours. The higher weighted average storage capacity duration for Regional WSSAs is mainly contributed by high storage capacity duration in Dodoma, Shinyanga, Singida and Mbeya WSSAs. DAWASCO s water storage capacity volume remained unchanged at 84,700m 3 as it was in the previous year; meanwhile the daily water demand has increased from 496,000m 3 in 2011/12 to 520,000m 3 during the reporting period. This translates to 3.9 hours of storage capacity duration in 2012/13 decreasing from 4.1 hours reported in the previous year. 13

30 2.10 Utilization of Sewer Networks Utilization of sewer networks is assessed by comparing the number of sewerage connections in a kilometer length of the sewer network. In 2012/13, the ten Regional WSSAs with sewerage networks maintained the weighted average of 44 connections in a kilometer length of the sewer network as it was reported in 2011/12. Meanwhile, DAWASCO reported a decrease in sewerage connections density from 91 connections per kilometer reported in 2011/12 to 83 connections per kilometer. Appendix 2: Table A2.5 provides the detailed trend of this indicator for the past three years for the ten Regional WSSAs and DAWASCO. The trends are also illustrated in Figure 2.11 below. Figure 2.11: Number of sewerage connections per kilometer of sewer network A similar performance comparison in Regional WSSAs is observed during the reporting period as it was in the previous year, with Arusha WSSA having the largest number of sewerage connections per kilometer length of the sewer network and Mbeya WSSA having the lowest number. However, a slight increase was observed in all the WSSAs except in Arusha, Moshi and Iringa WSSAs which reported a decrease in number of sewerage connections per kilometer length of the network. The three WSSAs have reported an extension of their sewerage network, while the number of sewerage connections did not increase significantly. The reported decrease in sewerage connections density by DAWASCO was due to the decrease in sewerage connections from 21,742 in 2011/12 to 16,539 during the reporting year following the database cleanup and demolishing of buildings with sewerage connections Performance of Sewer Networks Performance comparison of sewer networks has been done by analyzing the frequency of sewer blockages in a kilometer length of the sewer network expressed as the number of blockages/km/year. On average, in 2012/13, the ten Regional WSSAs with sewerage systems reported an average of 15 sewer blockages in a kilometer length of the network. Previously, in 2011/12, the reported average was 14 sewer blockages per km of sewer network. DAWASCO reported almost the same number of sewer blockages per kilometer length of 9 blockages as reported in 2011/12. The detailed trends of sewer blockages over the past three years for the ten Regional WSSAs and DAWASCO are presented in Appendix 2: Table A2.5 and illustrated in Figure 2.12 hereunder. 14

31 Figure 2.12: Number of sewer blockages in a kilometer of sewer network As it was in the previous year, during the reporting period, Arusha and Mbeya WSSAs reported the highest and lowest number of sewer blockages respectively. The highest sewer blockages in Arusha WSSA was reported to be due to insufficient capacity of the sewerage system which is being overloaded. It is worth noting that Dodoma WSSA and DAWASCO, although having a significant number of sewer connections in a kilometer length of sewer network, reported relatively few sewer blockages compared to other utilities. During the year under review, DAWASCO reported a total of 1,863 sewer blockages, which translates to 9 blockages per kilometer length of the sewer network, about the same number as reported in 2011/12. DAWASCO explained that most of the sewer blockages that were reported during the reporting period were caused by manhole cover theft in most of the areas, as well as the destruction of the sewerage system by the on-going road construction activities along Morogoro road Water Quality Monitoring Water utilities are obliged to carry out regular water quality tests to ensure that water supplied comply with the Tanzanian Standards for potable water. Most of the Regional WSSAs contracts the Regional Water Laboratories to conduct the water quality testing, although few of them test their water quality using their own laboratories. The most common tested parameters are E-coli, Turbidity, Residual Chlorine and ph. The recommended average compliance for the four parameters should be at least 98%. Generally, for the past three years, most of the Regional WSSAs have reported to satisfactorily comply with the water quality standards as set by TBS in most of the parameters as presented in Appendix 2: Table A2.6. The overall average compliance with the drinking water quality standards has decreased from 90% reported in 2011/12 to 86% during the reporting period. For DAWASCO, the average compliance declined slightly from 99% in 2011/12 to 94% during the reporting period. Figure 2.13 below gives the graphical presentation of the average compliance with drinking water quality standards for the four water quality parameters. 15

32 Figure 2.13: Reported Water Quality Compliance Of the new Regional WSSAs, Njombe WSSA was the only one with records for water quality testing over the past three years. Increased compliance to water quality standards was reported by Shinyanga, Tabora, Morogoro, Sumbawanga and Njombe WSSAs, while decreased compliance was reported by Mtwara, Arusha, Musoma Singida, Lindi and Bukoba. The rest of the utilities reported 100% compliance as it was during the previous year 2011/12. During the year under review, DAWASCO reported a decreased compliance with the water quality standards in terms of Turbidity and ph. Meanwhile, increased compliance with Residual Chlorine Standards have been reported. On average, the overall water quality compliance as reported by DAWASCO has slightly decreased from the average compliance reported in 2011/ Wastewater Quality Monitoring WSSAs are obliged to treat their wastewater effluent discharge to meet the standards set by TBS. Except for Tanga WSSA, all other WSSAs with sewerage systems treat their wastewater by using the Waste Stabilization Ponds. Tanga WSSA discharges its wastewater directly into the Indian Ocean. Since its establishment, the sewerage treatment system for Tabora WSSA has never discharged any effluent. This is due to the low usage of the system caused by the limited sewer network distribution. For this reason, Tabora WSSA does not conduct any wastewater effluent quality testing. For comparison of ten Regional WSSAs with sewerage systems, two wastewater quality parameters are considered, namely BOD 5 and COD. The overall average compliance with both BOD 5 and COD standards for eight Regional WSSAs was found to be 76.6%. Previously, in 2011/12, the average compliance with BOD 5 standards was 70.6%, while that of COD was 73%. For DAWASCO non-compliance was reported in both, the BOD 5 and COD standards. The three years trend on the performance of the utilities in complying with the wastewater effluent quality standards is presented in Appendix 2: Table A2.7 and illustrated in Figure 2.14 below. 16

33 Figure 2.14: Waster effluent quality compliance During the reporting period, Moshi and Mwanza WSSAs achieved 100% compliance with the wastewater effluent quality and joined Mbeya, Songea and Dodoma WSSAs which maintained 100% compliance throughout the three years. Moshi WSSA reported that over the past two years the Utility embarked on de-sludging exercise of their anaerobic ponds. Iringa WSSA which reported zero compliance with wastewater effluent quality in 2011/12 reported 48% compliance during the reporting period. This is explained by Iringa WSSA to be due to improvement of the performance of wetlands constructed downstream of the waste stabilization ponds. For the past four years, Arusha WSSA s wastewater effluents from the Waste Stabilization Ponds did not comply with the required standards. This was due to low capacity of the ponds to treat the increased inflow volume of the wastewater and the high concentration of organic and inorganic matter in the waste water, some coming from the industries which do not pretreat the waste water. Plans are underway to construct new wastewater treatment plants. For the case of DAWASCO, a consistent failure of compliance with BOD 5 and COD wastewater effluent quality standards was reported. The main cause of non-compliance is reported to be due to inadequate digestion of the biomass and heavily loaded influents from industries and discharges from sewerage tankers Water and Wastewater Quality Monitoring by EWURA During the reporting period, EWURA carried out independent drinking water and wastewater effluent quality testing for all the Regional WSSAs except for the new Regional WSSAs of Bariadi, Njombe, Geita and Mpanda. Table A2.6a in Appendix 2 compares the results on drinking water and wastewater effluent quality done by EWURA and those reported by the Regional WSSAs. Figure 2.15 shows the graphical presentation of the comparisons of the overall average compliance with the drinking water quality standard for the four water quality parameters, namely E-coli, ph, Residue Chlorine and Turbidity. Figure 2.16 shows the comparisons of the overall average compliance with the wastewater effluent quality standard for the two parameters, namely COD and BOD 5. 17

34 Figure 2.15: Comparison of WSSA s and EWURA s results on water quality EWURA s results were generally not in agreement with most of the WSSAs except for Songea WSSA. The significant difference in average compliance with water quality standards was observed at Kigoma WSSA. For the case of DAWASCO, the results showed that wastewater effluent quality was not compliant to the standards. Meanwhile, the results for drinking water quality showed 100% compliance with the all the four parameters of E-coli, Turbidity, ph and Residue Chlorine. Figure 2.16: Comparison of WSSA s and EWURA s results on wastewater effluent quality 18

35 EWURA observed similar results on both BOD 5 and COD with the ones reported by Moshi, Arusha, Songea WSSAs and DAWASCO. Note that Arusha WSSA and DAWASCO had zero compliance with BOD 5 and COD quality standards in accordance with EWURA s and their own results. There were significant variations from the reported results of the other WSSAs in one or both wastewater effluent parameters. 3.0 BUSINESS AND COMMERCIAL OPERATIONS OF WSSAs This section provides an analysis of Regional WSSAs and DAWASCO in terms of their business and commercial operations. The analysis will employ some of the key business and commercial performance indicators namely, water and sewerage service coverage, metering ratio, water and sewerage connections, complaints resolutions and revenue collection efficiency. 3.1 Total Water connections During 2012/13, the total number of water connections for Regional WSSAs reached 320,965 which is equivalent to a 6.5% increase as compared to 301,365 water connections reported in 2011/12. Contrary to the increasing water connections trend in all Regional WSSAs, DAWASCO s total number of water connections was reported to decrease from 132,088 in 2011/12 to 130,964 in 2012/13. Figure 3.1 below shows water connections trend for Regional WSSAs and DAWASCO while Appendix 2-Table A2.8 provides details of the same. Figure 3.1: Three Year Trend for Total Water Connection During 2012/13 all Regional WSSAs increased their water connections The highest increase in the number of water connections was recorded by Mwanza WSSA whose connections increased by 3,341 followed by Dodoma and Tanga WSSAs. During the period, Bariadi WSSA s water connections increased by 8 which is the lowest increase among the Regional WSSAs. Other regional utilities with low increase are Singida and Kigoma WSSAs. 19

36 It can also be noted from figure 3.2 below that most of the Regional WSSAs water supply customers are in the domestic category (93.2% of the total water supply customers). Figure 3.2: Composition of Water Supply Customers in Regional WSSAs DAWASCO s decrease in total number of water connections was reported to be due to disconnecting customers who had no water service. However, the number of active water connections increased from 121,351 in 2011/12 to 122,342 in 2012/13. On this trend of active connections, DAWASCO elucidated that some of the moribund customers (those who are inactive for more than a year) started receiving water and were therefore activated. Similar to Regional WSSAs, domestic customers are the majority in DAWASCO s customer base. During 2012/13, the proportion of domestic customers to total customers was reported to be 96% which is an increase from 91% reported in 2011/ Water Kiosk Connections Total number of water kiosks for Regional WSSAs increased from 1,977 in 2011/12 to 2,021 in 2012/13 which is equivalent to a 2.2% overall increase. Out of these only 1,559 kiosks are operational. For DAWASCO, the total number of kiosks has been reported to be 151 which is the same number reported in 2011/12. Out of these only 59 kiosks are operational. Figure 3.3 below shows three years trend on the number of water kiosks while details of the same are in Appendix 2 Table A2.8 20

37 Figure 3.3: Water Kiosk Connections Tanga WSSA has the highest number of water kiosks while Njombe WSSA has the lowest. The number of water kiosks increased significantly in Dodoma, Lindi and Babati WSSAs. At least 10 water kiosks increased for each of these utilities. For Lindi WSSA, the number of water kiosks increased as a result of extension of water services in the previously unserved areas. In Babati WSSA, additional water kiosks were constructed under the WSDP project while in Dodoma WSSA additional kiosks were constructed in low income underserved areas using utility s own funds. The number of water kiosks decreased significantly in Iringa because the utility abandoned some of the water kiosks as a result of an increase in household connections in areas with new water network. DAWASCO did not update its data on the number of water kiosks during the reporting year. 3.3 Metering Ratio In this year s report, utilities performances on metering their customers was analysed based on metered active water connections. Previously, utilities performances on this indicator were analysed based on total water connections, which valued the utilities achievements by considering operational metered connections (active) and non-operational connections (inactive) whose meters were kept in stock. Based on the foregoing, the weighted average metering ratio achieved by Regional WSSAs by the end of 2012/13 was 96.6%, while for DAWASCO, it was 93.6%. Previously, in 2011/12, Regional WSSAs reported an average metering ratio based on total connection of 83.2%, while DAWASCO reported 81.9%. Table A2.9 in Appendix 2, and Figure 3.4 below gives more details of the three years trend of metering ratio for the water utilities. 21

38 Figure 3.4: Metering Ratio Computation of metering ratio based on operational metered connections (active) have improved significantly in respect of the values of metering ratios of most of the utilities. Significant improvements were observed in Tabora, DAWASCO, Morogoro, Kigoma, Musoma, Singida and Njombe WSSAs. During the reporting period, Shinyanga, Iringa and Tabora WSSAs joined the group of the Regional WSSAs with 100% metering ratios. Other WSSAs with 100% metering ratio are Arusha, Dodoma, Moshi, Mwanza, Mtwara, Tanga, and Babati WSSAs. Undesirably, metering ratio decreased in Mbeya and Geita WSSAs. It was reported that Geita WSSA conducted a customer survey and eliminated all customers with malfunctioning meters in the list of metered customers. Mbeya WSSA, on the other hand, reported that the decrease in metered connections was caused by lack of water meters for installation to the restored inactive connections. 3.4 Sewerage Connections The total number of sewerage connections for Regional WSSAs during the year reached 22,055 from 20,974 reported in 2011/12. For DAWASCO, the sewerage connections decreased from 21,742 in 2011/12 to 16,539 during the reporting period. The detailed trends of sewerage connections for the 10 Regional WSSAs with sewerage services and DAWASCO are presented in Appendix 2: Table A2.11 and illustrated in Figure 3.5 below. 22

39 Figure 3.5: Sewerage connections The rate of increase in the number of sewerage connections is still very low just like in the previous year. Nevertheless, Mbeya, Iringa, Mwanza and Dodoma WSSAs reported relatively significant increase of at least 100 sewerage connections over the reporting period. The decrease in number of sewerage connections for DAWASCO was due to database cleanup and demolition of buildings which had sewerage connections. 3.5 Water Service Coverage Water service coverage has been discussed in terms of population directly served with water and population living in area with water network. During the reporting period, the analysis of the service coverage considered the results of the population and housing census that was conducted in 2012 and published by the National Bureau of Statistics (NBS). (a) Proportion of Population Directly Served with Water On average, the proportion of population directly served by the Regional WSSAs during the reporting period slightly decreased from 66.3% reported in 2011/12 to 65.9% in the year under review. DAWASCO also reported a decrease in this indicator from 46.4% to 40.7% over the same period. Appendix 2: Table A2.10 provides detailed trends of this indicator over the past three years for Regional WSSAs and DAWASCO and illustrated in Figure 3.6 below. 23

40 Figure 3.6: Proportion of population directly served with water (b) It can be observed that most of the Regional WSSAs and DAWASCO reported a decrease in their proportion of population directly served with water. While, the main reason being the updating of the data of total population in the service area to tally with the population census, other reasons include extension of the boundaries of the service area by inclusion of peri-urban areas that were previously not part of the service area. Also some utilities, such as Geita WSSA conducted customer surveys to establish the number of people that are directly served. The highest achieved ratio of population directly served with water was reported by Tanga WSSA which recorded 94.5% coverage ratio. In 2011/12, Moshi WSSA recorded the highest ratio of 92.4%, which has decreased to 89.4% during the reporting year. The lowest achieved ratio of population directly served with water was 6.6% as reported by Geita WSSA which also recorded the highest decrease from 44.7% reported in 2011/12. This decrease was due to increase in service area for Geita WSSA after being upgraded to a Regional headquarter. DAWASCO reported a decrease in proportion of population directly served with water from 46.4% reported in 2011/12 to 40.7% during the reporting period. DAWASCO explained that the decrease was caused mainly by review of population data as well as a decrease in the number of water connections. Proportion of Population Living in Area with Water Network During the reporting year, the overall average of the proportion of population living in areas with water network decreased from 83.7% in 2011/12 to 80.1% in 2012/13. As explained previously, this indicator was also affected by the revision of the population data using the census results. But also, some utilities have extended their service areas to include the periurban wards, thus increasing the total population in their service areas. DAWASCO reported a decrease in population living in area with water network from 67.5% reported in 2011/12 to 44.9% during the reporting period. Figure 3.7 below which is derived from Appendix 2 Table A2.10 provide more details on this indicator. 24

41 Figure 3.7: Proportion of population living in area with water network (c) The highest percentage of population living in area with water network during the reporting period was reported by Moshi WSSA, which reported that the entire population in its service area lives in the area with water network. The highest increase on this indicator during the year under review was reported by Lindi WSSA which improved from 41% reported in 2011/12 to 70.3%. Babati WSSA also recorded a significant increase on this indicator from 68.5% to 84.4% over the same period. The main reason for these increase was the implementation of WSDP projects which included extension of water distribution network to unserved areas. Notable decreases in proportion of population living in area with water network were observed in Songea, Shinyanga, and Sumbawanga WSSAs. Apart from revision of the total population data on these utilities based on census results, there were also updates on their service area coverage which were expanded to include peri-urban wards. DAWASCO s proportion of population living in area with water network was affected by the revision of the population data using the census figures. Comparison of the service coverage indicators Comparing the two water service coverage indicators provides an overview of the existing potentials for utilities to increase their customer base and eventually serve more people in their areas. Figure 3.8 below provides a graphical presentation of the comparison of the two indicators. 25

42 Figure 3.8: Comparison of proportions of population living in area with water network and population served with water It can be observed that none of the water utilities have been able to serve all the population living in the areas with water network. Most of them have greater potential of increasing their customer bases since their proportion of population living in area with water networks is significantly more than their proportion of population directly served with water. It is also worth noting that Babati WSSAs has almost served all the population living within their area with water network. 3.6 Average Service Hours This indicator provides information on the daily average duration of which water supply was available at the customers connections during the reporting period. Normally, utilities need to ensure their customers get 24 hours of service. However, during the reporting period, Regional WSSAs reported an average of 14.9 service hours, decreasing from 16 hours reported in 2011/12. At the same time, only 24.3% of the population in the Regional WSSA were reported to have received the water supply service for 24hours, decreasing from 41.5% reported in 2011/12. For DAWASCO, there was no improvement in service reliability as average service hours and percentage of water connections with 24 hours service remained at 8 hours and 25% respectively. Figure 3.9 and Appendix 2 - Table A2.12 give a detailed overview on average service hours. 26

43 Figure 3.9: The average service hours Service hours decreased for the WSSAs of Mbeya, Dodoma, Tabora, Morogoro, Songea, Arusha, Bukoba, Sumbawanga, Njombe and Geita. Arusha WSSA has reported a continuous decrease in service hours over the past three years. The decrease in Tabora, Morogoro, Songea, Arusha, Sumbawanga and Njombe is mainly due to insufficient water production as a result of decreased yield of water sources affected by drought. There is an appreciable improvement in service hours for Lindi WSSA as a result of development of new water sources. Iringa WSSA has reported that water services to their customers are available for 24 hours due to the utilization of the recently commissioned water production and distribution infrastructure. DAWASCO s service hours are indeed less than those provided by Regional WSSAs which implies that reliability of services in DAWASCO s service area is less than in the Regional WSSAs. 3.7 Sewerage Coverage The overall average sewerage coverage for Regional WSSAs has on average increased from 8.9% in 2011/12 to 9.2% during the reporting period. DAWASCO has reported the same sewerage service coverage of 7.4% as was in the previous year. Details on sewerage coverage are as provided in Appendix 2 Table A2.11 and Figure 3.10 below. 27

44 Figure 3.10: Proportion of population connected with sewerage services Most of the Regional WSSAs reported an increase in the proportion of population connected with sewer network, with significant increase reported by Dodoma WSSA. On the other hand, Arusha WSSA reported a significant decrease of sewerage coverage. DAWASCO reported the same sewerage coverage as the one reported in 2011/ Complaints and Complaints Resolution The total number of complaints received by Regional WSSAs during 2012/13 was 46,785, and those received by DAWASCO were 15,923. As shown in Figure 3.11 most of the complaints were on billing issues followed by meter reading and leakages. Fig. 3.11: Percentage of complaints received by Regional WSSAs and DAWASCO Both Regional WSSAs and DAWASCO had most of the received complaints (26% of the total complaints) on billing issues. These results suggest that water utilities should review their billing processes so as to reduce the complaints thereof. 28

45 3.9 Staff per 1000 water and sewerage connections This indicator measures staff productivity based on average number of staff per 1000 customers. During the reporting period, Regional WSSAs had an average of 7 staff serving 1000 connections, the same level that was reported in 2011/12. DAWASCO has increased its staff per 1000 connection ratio from 5.8 reported in 2011/12 to 6.2 in 2012/13. The performance benchmark for this indicator should be less or equal to 5 staff per 1000 water and sewerage connections. The details of the total number of staff and the trends of staff per 1000 water and sewerage connections over the three years period for the Regional WSSAs and DAWASCO is presented in Appendix 2: Table A2.18 and illustrated in Figure 3.12 below. Figure 3.12: Number of staff per 1000 water and sewerage connections Songea, Tanga and Arusha WSSAs reported the lowest ratios of staff per 1000 water and sewerage connections and eventually attained the performance benchmark. The high staff per 1000 connection figures reported by Lindi, Geita and Bariadi WSSAs is due to the small customer base in the these utilities. DAWASCO s number of staff per 1000 connections slightly increased from 5.8 reported in 2011/12 to 6.4 in 2012/13. This unsatisfactory trend is attributed to the increase in number of staff from 894 in 2011/12 to 943 in 2012/13 while the number of water and sewerage connections decreased during the same period. Despite the deterioration, DAWASCO s level of staff productivity is generally better than the overall average of 7.0 staff per 1000 connections for Regional WSSAs in 2012/ Billing and Revenue Collection Performance The billing and revenue collection performance is explained by analyzing three indicators, namely collection efficiency, accounts receivable, and Overall Efficiency Indicator (OEI). (a) Collection Efficiency Collection efficiency measures the ability of WSSAs to collect the billed amount from water supply and sewerage services during a year. A higher collection efficiency reflects a better performance. In 2012/13, WSSAs collection efficiency averaged 89.2%, which is 29

46 an improvement from 77.2%, achieved in 2011/12. Fig presents WSSAs collection efficiencies from 2010/11 to 2012/13. Fig. 3.13: Collection Efficiency Mwanza, Shinyanga, Njombe, Singida and Musoma WSSAs were the best performers in 2012/13 after achieving collection efficiencies of more than 98.1% with Songea WSSA being the least performer with a collection efficiency of 68.8%. The low collection efficiency for Songea and Tabora WSSAs was attributable mainly to nonpayment by Public institutions. It should be noted that some utilities have billing softwares that could not separate arrears from current year s collections. This led to relatively high records of collection efficiencies for utilities such as Mwanza, Shinyanga, Njombe, Singida and Musoma WSSAs. For DAWASCO, revenue collection efficiency decreased to 76.9% as compared to 78.3% achieved in 2011/12 during the year 2012/13. (b) Accounts Receivable Ratio Accounts receivable indicates the extent of arrears which are due to the utility. It is measured in terms of months of water and sewerage billings. An accounts receivable amount equivalent to less than two months of the billing is regarded as best practice. On average, accounts receivable declined in performance from 2.4 months in 2011/12 to 2.9 in 2012/13. 30

47 Fig. 3.14: Accounts Receivable Morogoro, Njombe, Geita, Babati and Songea WSSAs were the best performers in 2012/13 after recording accounts receivable ratio of less than 2 months with Tabora and Mtwara WSSA being the least performers with an accounts receivable ratio of 6.5 and 3.9 months, respectively. Kigoma WSSA had huge accounts receivable ratio during 2010/11. The Utility provided for doubtful debt amounting to TZS million during 2011/12 which was about 50% of total receivables it had during 2010/11. Despite this measure the accounts receivable ratio has increased from 1.4 months to 3.1 months in 2011/12 and 2012/13, respectively. DAWASCO s accounts receivable stood at 2.2 months of its annual billing during 2012/13 which is an achievement compared to 4.0 months reported in 2011/12. This DAWASCO s performance was also better compared to the 2.9 months average accounts receivable reported by regional WSSAs in 2012/13. DAWASCO explained that the accounts receivable improved due to the increase in the provision for doubtful debts from TZS 3.9 billion in 2011/12 to TZS 6.7 billion in 2012/13. (c) Overall Efficiency Indicator (OEI) The Overall Efficiency Indicator (OEI) is driven by two key indicators namely collection efficiency and Non-Revenue Water (NRW). It is given as actual collection expressed as a percentage of the value of total water production. In other words, OEI equals collection efficiency multiplied by billed volume of water as a percentage of water production volume. For Utilities with collection efficiencies above 100%, a 100% collection efficiency is assigned to them. The recommended OEI should be more than 76% by considering NRW of 20% and collection efficiency of 95%. During 2012/13, the OEI for utilities ranged between 36.7% and 78.0%. On average, in 2012/13, the EOI improved to 57% compared to 50.5% registered in 2011/12. 31

48 Fig. 3.15: Overall Efficiency Indicator Shinyanga WSSA (78.0%), Morogoro WSSA (71.2%), Singida WSSA (70.8%), Tanga WSSA (70.8%) and Moshi WSSA (65.2%) were the overall efficient utilities in 2012/13 while Bukoba WSSA was the least efficient, with an overall efficiency indicator of 36.7%. Only Shinyanga WSSA attained the recommended OEI. Bukoba WSSA s poor performance in the Overall efficiency indicator is due to high NRW which during 2012/13 stood at 53.39%. Despite the relatively good performance recorded by Morogoro and Moshi WSSAs in 2012/13, the utilities could not achieve the performance levels they recorded in 2011/12. During the year under review, there was an improvement in OEI for Shinyanga, Singida, Tanga, Njombe, Mwanza, Dodoma, Geita, Babati, Mbeya, Bariadi, Kigoma, Sumbawanga, Musoma and Iringa WSSAs compared to the achievement in 2011/12. During 2012/13, OEI for DAWASCO was 34.2% which is a decrease compared to 39.4% reported in 2011/12. However, this is below the regional WSSAs average of 57.5% in 2012/13. The decline in terms of OEI for DAWASCO was mainly due to both a decrease in collection efficiency from 78.3% in 2011/12 to 76.9% in 2012/13 and an increase in NRW from 49.8% in 2011/12 to 55.5% in 2012/ FINANCIAL OPERATIONS 4.1 Revenue Generation The revenue from the water and sewerage services is the core and most stable source of income for WSSAs in order to meet Operation and Maintenance (O&M) costs, as well as infrastructural investment costs. Thus, the sustainability of a utility is mainly dependent on its ability to correctly bill its customers from the water and sewerage services it renders and to collect the billed amount efficiently. 32

49 Table 4.1: Revenue Generation for Regional WSSAs (In Million TZS) 2010/ / /13 Category A Water Billing 35, , , Sewerage Billing 1, , , Other Operating Revenues 6, , , Total Category A 43, , , Category B & C Water Billing 2, , , Sewerage Billing Other Operating Revenues , Total Category B & C 3, , , Total Water Billing 38, , , Sewerage Billing 1, , , Other Operating Revenues 7, , , GRAND TOTAL 47, , , Table 4.1 reveals that in 2012/13, revenue billing trends for all WSSAs improved considerably compared to 2011/12. During the above mentioned period, water billing for category A WSSAs rose from TZS 46.6 billion to TZS 55.9 billion, while sewerage billing rose from TZS 2.6 billion to TZS 3.2 billion, and other operating revenues rose slightly from TZS 9.3 billion to TZS 9.6 billion, respectively. The improved performance is attributable to an overall increase in the water production mainly as a result of an increase in the customer base. DAWASCO s composition of operating revenues included water sales from operator tariff which amounted to TZS 40.4 billion (88.0%), sales from sewerage operator tariff which amounted to TZS 4.2 billion (9.1%), and other operating revenues which amounted to TZS 1.3 billion (2.8%). 4.2 Total Revenue Collection Trend Unless the billed amount is collected, WSSAs will find it difficult to become financially stable. A stable and an improved cash flow from water and sewerage services is vital for each utility s sustainability in service delivery. In 2012/13, total revenue collections increased by 20.1% to TZS 62.5 billion from TZS 52.0 billion registered in 2011/12. Fig. 4.1 presents WSSAs performance in revenue collection from 2010/11 to 2012/13. Fig. 4.1: Total Revenue Collections 33

50 Mwanza WSSA continued to register the highest revenue collection in 2012/13 collecting TZS 14.0 billion with Bariadi WSSA being the least revenue collector collecting TZS 46.0 million. Mwanza WSSA has also recorded the highest increase in revenue collection which is mainly attributed to the adoption of mobile phone payment in collection of its revenues. In 2012/13, Morogoro, Moshi, Mtwara, Singida and Sumbawanga WSSAs revenue collection declined mainly due to the decrease in collection efficiencies. Further, in Moshi WSSA, the volume of water produced declined, thus decreasing the billed volume. For DAWASCO, revenue collection increased from TZS 30.9 billion in 2011/12 to 39.7 billion during the reporting period. The increase is attributed to the increase in the water and sewerage operator tariff which came into effect from 1 st July 2012, and the application of mobile payment technology in revenue collection. 4.3 Expenditure and Budget Control Operating Cost per Unit of Water Produced Operating costs per unit of water produced establishes all operating costs associated with production of a unit of water. It considers total operating costs exclusive of depreciation. In 2012/13, on average, the operating costs per unit of water produced increased to TZS per m 3 from TZS per m 3 reported in 2011/12. Given, an average tariff in use of TZS per m 3 during 2012/13, this implies that most of the regional WSSAs were able to cover at least O&M costs excluding depreciation. Fig. 4.2: Total Costs per unit of water produced In 2012/13, the top five WSSAs in terms of low operating costs per unit of water production were Mpanda (TZS 125.8), Arusha (TZS 340.9), Njombe (TZS 343.1), Moshi (TZS 382.1) and Mbeya (TZS 383.4) while the top five WSSAs in terms of high operating costs per unit of water production were Lindi (TZS 1,799.2), Bariadi (TZS 868.5), Shinyanga (TZS 814.1), Geita (TZS 673.4) and Singida (TZS 657.9). The significant increase in operating costs for Lindi WSSA is attributed to increased water production, personnel and administration costs. The increase in water production costs were 34

51 due to increased electricity costs after completion of the water project. The personnel costs increased due to a review of salaries and allowances. The higher administration costs were due to spending on some administrative cost items which in previous year were left due to insufficient revenues. It should be noted also that during the period under review, Lindi WSSA had their tariff adjusted from an average of TZS 700 per m 3 to TZS 900 per m 3. Total costs per unit of water produced increased during 2012/13 compared to 2011/12 for Dodoma, Tanga, Morogoro, Mbeya, Iringa, Tabora, Musoma, Kigoma, Bukoba, Sumbawanga, Babati and Njombe WSSAs. In contrast, total costs per unit of water produced decreased during 2012/13 for Mwanza, Arusha, Moshi, Shinyanga, Songea, Mtwara and Singida WSSAs compared to the 2011/12 performance. For DAWASCO, the total O&M costs per cubic meter of water produced increased to TZS during 2012/13 compared to TZS per cubic meter recorded in 2011/12. DAWASCO s total O&M costs per cubic meter of water produced was more than TZS per m 3, the average registered by other regional WSSAs Production Cost Energy Cost Per Unit of Water Produced Energy costs per unit of water produced is the proportion of energy costs (that is, electricity costs for production and distribution) to the total production volume. The intensity of energy costs is largely determined by the technology of the water supply system used including the type of water sources utilized, and method of abstraction, production and distribution. Moreover, energy costs per unit of water produced is largely influenced by the design and the level of efficiency of the pumping infrastructure. In 2012/13, the energy costs for utilities ranged from TZS 0.2 to TZS per m 3. In 2012/13, except for Lindi, Dodoma, Mwanza, Tabora, Singida, Bariadi, Musoma, Iringa, Kigoma, Mtwara and Babati WSSAs, the energy cost for most utilities was less than TZS 100 per m 3. The overall average energy costs for all utilities stood at TZS 98.2 per m 3 of water produced increasing from TZS 76.7 per m 3 recorded in 2011/12. Fig. 4.3: Energy Costs per unit of water produced 35

52 In 2012/13, Sumbawanga, Njombe, Shinyanga, Moshi, and Arusha WSSAs were the least energy costs utilities with Lindi, Dodoma, Mwanza, Tabora and Singida WSSAs recording high energy costs per unit of water produced. Energy costs per unit of water produced for Dodoma, Mwanza, Tabora, Singida, Musoma, Dodoma, Mwanza, Tabora, Singida and Musoma WSSAs have been high and ever-increasing for the past three years. For DAWASCO, energy costs increased to TZS 81.7 per m 3 during the reporting period from TZS 76.4 per m 3 recorded in 2011/12. DAWASCO s energy costs were less than the average energy costs of TZS 98.2 per m 3 for other regional WSSAs. Chemical Cost per Unit of Water Produced Generally, chemical consumption tends to be relatively higher with surface water sources than with ground water sources. During 2012/13, chemical costs for utilities ranged from TZS 0.2 to TZS 98.2 per m 3. In 2012/13, on average, chemical costs for utilities decreased slightly to TZS 17.0 per m 3 from TZS 17.8 per m 3 recorded in 2011/12. Fig. 4.4: Chemical Costs per Cubic Metre In 2012/13, Morogoro, Iringa, Tabora, Tanga and Mbeya WSSAs registered relatively high chemical costs per m 3. All these utilities depend largely on surface water sources for their raw water abstraction. In addition, Tanga WSSA reported to have introduced the usage of Poly Aluminium Chloride (PAC) which is relatively expensive, as a supplement to the normal Aluminium Sulphate in a bid to further improve the quality of water produced. Chemical costs per m 3 for Tanga, Mbeya, Mwanza, Musoma, and Sumbawanga WSSAs have been increasingly high since 2010/11. Similarly, DAWASCO s chemical costs per unit of water produced increased during 2012/13. Chemical costs increased from TZS 44.8 per m 3 during 2011/12 to TZS 46.4 per m 3 in 2012/13. DAWASCO s chemical costs per m 3 were high compared to other regional WSSAs which had an average of TZS 17.0 per m 3. DAWASCO indicated in their report that the increase in chemical costs was linked to the use of expensive disinfectant, calcium hypochlorite, instead of chlorine gas due to transportation problems 36

53 4.3.3 Personnel Cost The impact of personnel costs on overall performance of a utility is measured in comparison to the total water production and revenue collections. Normally the lower the ratio of personnel costs to water production or revenue collection, the better the performance. Personnel Cost per Unit of Water Produced During 2012/13, personnel costs for utilities ranged between TZS 51.4 and TZS per m 3 of water produced. On average, in 2012/13, personnel costs per unit of water produced for all regional utilities increased to TZS per m 3 from TZS per m 3 recorded in 2011/12. Generally, Category B and C WSSAs tend to have higher personnel costs per unit of water produced than Category A WSSAs. During 2012/13, they recorded an average of TZS per m 3 compared to TZS per m 3 recorded by Category A WSSAs. Fig. 4.5: Personnel Costs per cubic metre of water produced In 2012/13, Lindi, Bariadi, Singida, Mtwara, Morogoro and Sumbawanga WSSAs registered relatively high personnel costs per m 3 while Mpanda, Njombe, Arusha, and Mbeya and Iringa WSSAs registered relatively low personnel costs per m 3. Despite the fact that high personnel costs per cubic meter produced are normal under Category B and C WSSAs, Mpanda WSSAs recorded the least personnel costs per cubic meter produced at TZS 51.4 per cubic meter. Lindi WSSA personnel costs almost doubled between 2011/12 and 2012/13 from TZS to TZS per m 3 following the increase in salaries of its staff. On the other hand, Singida WSSA s personnel costs dropped from TZS to TZS per m 3 due to the decision by the Utility to cut down personnel costs due to a decrease in revenue collection during the year and its effort to improve the ratio of personnel costs per revenue collections towards the 30% target. DAWASCO s performance with regard to personnel costs per unit of water produced during 2012/13 was better than during the previous year. Personnel costs per unit of water produced 37

54 stood at TZS 98.9 per m 3 which is a decrease compared to TZS per m 3 recorded in 2011/12. This is significantly better than TZS per m 3 which is the average for the regional water utilities. This performance is attributed to the increase in water production volume during the reporting period. Personnel Cost as a Percentage of Revenue Collection Personnel costs as percentage of revenue collections shows the proportion of total revenue collections spent to meet personnel costs. It considers revenue collections from internal sources exclusive of arrears. Generally, the lower the percentage the better the performance. During 2012/13, personnel costs as a percentage of revenue collections ranged between 24.1% and 97.1%. This represents an average of about 45.9% during 2012/13 which is an increase compared to 41.6% registered in 2011/12. Fig. 4.6: Personnel Costs as a percentage of Revenue collections In 2012/13 only Mwanza and Shinyanga WSSA registered personnel costs as a percentage of revenue collections of below 30% as required by MoU between WSSAs and the Ministry of Water. Meanwhile, Bariadi, Sumbawanga, Lindi, Singida WSSAs had the highest ratio of personnel costs as a percentage of revenue collections, which was also reported with a significant increase during the reporting year. Musoma, Songea, Tanga, Arusha and Mpanda WSSAs have improved their personnel costs as a percentage of revenue collections towards the 30% benchmark through improved revenue collections. Under Category A Utilities, Moshi and Mtwara WSSAs could not perform well in terms of their personnel costs as a percentage of revenue collections towards the 30% benchmark through improved revenue collections. Moshi WSSA, for example, has their ratio increased from 38.7% to 51.2% from 2011/12 to 2012/13, while the ratio for Mtwara WSSA increased from 50.4% to 55.1% during the same period. Moshi WSSA has reported that the increase in the ratio is mainly due to the review of its staff remunerations. Meanwhile, Mtwara WSSA reported to have recruited five senior staff and a team of casual laborers to curb the NRW. 38

55 Under Category B and C Utilities, only Babati, Singida and Mpanda WSSAs managed to decrease the personnel costs as a percentage of revenue collections from 54.7% to 51.1% (for Babati WSSA), from 78.3% to 57.1% (for Singida WSSA) and from 40.7% to 31.7% (for Mpanda WSSA). For DAWASCO, personnel costs as a percentage of collections from water, sewerage and related services decreased compared to the previous year. Personnel costs improved from 29.5% recorded in 2011/12 to 23.4% in 2012/13, mainly due to the increase in the total revenue collections during the reporting period Administrative Cost Administration costs are regarded as indirect costs as they are not directly linked to water production. As these costs increase, a Utility deviates from the core business of providing water and sewerage services. During 2012/13, administration costs for all utilities ranged between TZS 16.5 and TZS per m 3. In 2012/13, on average, administration costs per unit of water production for all utilities increased to TZS per m 3 compared to TZS per m 3 recorded in 2011/12. Fig. 4.7: Administration Costs per cubic metre of water produced In 2012/13, Mpanda WSSA (TZS 16.5), Kigoma WSSA (TZS 67.1), Musoma WSSA (TZS 59.1), Mbeya (TZS 83.2), Arusha WSSA (TZS 84.0), Mwanza WSSA (TZS 94.2), Tabora WSSA (TZS 95.9), Bukoba WSSA (TZS 101.1), and Moshi WSSA (TZS 112.1) registered low administration costs per unit of water production. The higher administration cost per unit of water production were registered by Lindi WSSA (TZS 406.8), Bariadi WSSA (TZS 285.3), Singida WSSA (TZS 181.1), Babati WSSA (TZS 160.3) and Geita WSSA (TZS 155.7). For DAWASCO, administration costs are measured in terms of cost per unit of water produced. During 2012/13, administration costs for DAWASCO increased from TZS per m 3 recorded in 2011/12 to TZS per m 3. This is higher than the average administrative costs of TZS per m 3 recorded in 2012/13 by the regional WSSAs. 39

56 4.3.5 Cost Structure Composition of O&M Cost (Excluding Depreciation) During 2012/13, on average, regional utilities O&M costs excluding depreciation were composed of water production, distribution, maintenance and repair costs (34.8%), administration costs (22.8%), personnel costs (37.4%), and other costs (5.0%). For Category A WSSAs, on average, O&M costs consisted of production, distribution and maintenance and repair costs (37.2%), administration costs (21.2%), while personnel cost was 36.2%. The 2012/13 cost composition is more or less similar to that recorded in 2011/12. Fig. 4.8: Composition of O&M Cost (Excluding Depreciation) for Category A WSSAs and DAWASCO The cost structure performance for Category A WSSAs and DAWASCO shows that: In 2012/13, Moshi WSSA (46.3%), had the highest composition of personnel costs out of the total O&M costs while Shinyanga WSSA (24.5%) had the lowest. Shinyanga WSSA had the highest proportion of production, distribution, maintenance and repair costs of 58.4% with Moshi WSSA having the lowest at 19.9% compared to other WSSAs in Category A. Moshi WSSA had the highest proportion of administration cost (29.3%) while Musoma WSSA had the lowest proportion (13.1%). During 2012/13, DAWASCO s composition of O&M costs (excluding depreciation) were production, distribution, maintenance and repair costs (24.4%), administration costs (40.0%), personnel costs (16.8%), and other costs (18.7%). 40

57 Fig. 4.9: Composition of O&M Cost (Excluding Depreciation) for Category B and C WSSAs For Category B and C WSSAs, the distribution of O&M costs was composed of production, distribution, maintenance and repair costs (31.7%), administration costs (24.9%) while personnel costs were 39.0%. Other costs constituted 4.4% of total O&M costs. For Category B and C regional WSSAs, in 2012/13 the Mpanda WSSA registered the highest proportion of production, distribution, maintenance and repair costs of 45.5% with Sumbawanga WSSA recording the lowest at 9.6%. Sumbawanga WSSA had the highest personnel costs proportion of O&M costs at 59.6% with Lindi WSSA registering the lowest at 22.7%. In 2012/13, Njombe WSSA recorded the highest proportion of administration costs with 34.6% while Mpanda WSSA recorded the lowest at 13.1%. Depreciation versus Other O&M Cost During 2012/13, on average, regional utilities depreciation costs accounted for 21.0% of the total operating costs, while other O&M costs accounted for 79.0% For Category A WSSAs, on average, depreciation costs accounted for 21.1%, while other operating costs averaged 78.9%. 41

58 Fig. 4.10: Composition of O&M Cost with Depreciation for Category A WSSAs and DAWASCO In 2012/13, Iringa WSSA recorded the highest proportion of depreciation costs at 47.4% while Musoma WSSA recorded the lowest proportion at 0%. The reasons for the two extremes are that while, Iringa WSSA started to depreciate the new assets obtained after the completion of water supply services improvement project, Musoma conducted a revaluation of its assets at the close of the year. During 2012/13, DAWASCO s depreciation constituted only 0.8% of the total operating costs whereas other O&M costs constituted 99.2%. The DAWASCO s depreciation proportion is lower than that of Category A WSSAs average (21.1%) as well as Category B and C WSSAs average (20.8%). The low depreciation proportion for DAWASCO is due to the fact that most of the assets used for provision of water supply and sewerage services in the DAWASCO s service area are owned by DAWASA. 42

59 Fig. 4.11: Composition of O&M Costs with Depreciation for Category B & C WSSAs For Category B and C WSSAs, on average, depreciation costs accounted for 20.8%, while other O&M costs averaged 79.2%. Bariadi WSSA recorded the highest proportion of depreciation costs with 50.3% while Kigoma WSSA recorded the lowest at 4.7%. 4.4 Cost Recovery Working and Operating Ratio Both Working and Operating Ratios measure the ability of WSSAs to recover their operational costs from their annual revenues. Working Ratio (WR) The Working ratio is calculated by taking the utility s total annual expenses excluding depreciation and debt related expenses and dividing it with its annual revenue. The recommended ratio should be less than On average in 2012/13, Working Ratio for Regional WSSA was 1.08 which is a decline in performance compared to 1.00 registered in 2011/12. 43

60 Fig. 4.12: Working Ratio In the year 2012/13, no utility managed to meet the recommended ratio of During 2012/13, Arusha WSSA was the best performer in this indicator with a ratio of 0.77 while Bariadi WSSA was the least performer, registering the highest working ratio of 2.77 DAWASCO s working ratio fluctuated from 1.14 reported in 2010/11 to 1.06 reported in 2011/12, and thereafter, worsened to 1.20 reported in 2012/13. This is lower than regional WSSAs average of 1.08 Operating Ratio (OR) The operating ratio is an indicator used to measure a utility s ability to recover operating costs (including depreciation) from its annual revenues. The recommended ratio should be less than 1. In 2012/13, on average, the operating ratio increased to 1.5 from 1.2 recorded in 2011/12. 44

61 Fig. 4.13: Operating Ratio for Regional Water WSSAs In 2012/13, Bariadi WSSA recorded the highest Operating Ratio of 5.57 while Arusha WSSA recorded the lowest Operating Ratio of WSSAs were the only WSSAs with the Operating Ratio of less than or equal to 1. In 2012/13, Lindi, Singida, Kigoma, Mwanza, Shinyanga, Musoma, Tanga, Dodoma, Tabora, Moshi, and Arusha WSSAs managed to reduce their operating ratios compared to the levels achieved during 2011/12. DAWASCO s operating ratio increased from 1.07 reported during 2011/12 to 1.21 reported during 2012/13. This is low when compared to the average of 1.47 reported by other regional WSSAs Average Water Tariff in Use Average Water Tariff in use is calculated as the weighted average of nominal metered tariffs of all customer categories as approved by EWURA weighted by their respective consumption levels. In the absence of the consumption levels, the domestic tariff is assumed as an estimate of the average water tariff in use. The estimation of average water tariff in use also considers the number of days in the year under review that the tariff was applicable. 45

62 Fig. 4.14: Average Tariff in Use for Regional WSSAs In 2012/13 the average tariff for WSSAs increased to TZS per m3 compared to TZS per m 3 recorded in 2011/12. Mpanda WSSA (TZS 445), Njombe WSSA (TZS 395) and Geita WSSA (TZS 300) were charging relatively low water tariffs during 2012/13. It should be noted that these Utilities have not submitted a tariff application to EWURA since the regulator came into operation in The only review of tariff that was done was in 2011 when these Utilities together with other districts, small towns and national projects water utilities were given a tariff indexation by EWURA through Order No which became effective from 1st June, Shinyanga WSSA has the highest tariff among Regional WSSAs of about TZS 923 per m 3 due to the costs it incurs for purchasing bulk water from Kahama Shinyanga Water Supply Authority (KASHWASA). The average tariff in use for DAWASCO has remained constant at TZS 1,119.0 per m 3. This implies that DAWASCO charged a higher tariff on average during 2012/13 compared to the Regional WSSAs who charged an average of TZS per m 3. Note that following the major tariff review in accordance with the Lease Agreement, EWURA approved a tariff of TZS 1,119.0 per m 3 during 2012/13 through Order No The tariff was applicable from 1st July 2012 to 30th June Note also that despite the high total customer tariff, DAWASCO s component of the tariff (that is, the Operator Tariff) was only 604 TZS/m Average Monthly Water Bill for Domestic Connections As WSSAs strive to achieve cost recovery, customers are affected by increased payment obligations for water services. The average monthly bill per domestic connection is estimated as the ratio of the average domestic water billing and the number of domestic connections. The variations in the average monthly bill can be linked to the tariff structure, customer base and availability of services as well as the overall efficiency of the operations of the utility. 46

63 Fig. 4.15: Average Monthly Bill per Domestic Connection The average monthly bill per domestic connection for regional water Utilities was TZS 8,886.2 per month during 2012/13, and has increased from TZS 6,788.1 per month recorded during 2011/12. In 2012/13, Dodoma continued to be the most expensive area in terms of water services which is operated by a regional water authority with an average bill of TZS 14,970.1 per per domestic connection month while Lindi, the cheapest with a monthly bill of TZS 5,304.3 per month. During the year under review, DAWASCO s average monthly bill for domestic customers stood at TZS 24,733.2 per month which is an increase compared to the TZS 23,560.9 per month registered during 2011/12. This is also higher than the TZS 8,886.2 per month average recorded by other regional utilities. 5.0 COMPLIANCE WITH REGULATORY DIRECTIVES AND REQUIREMENTS WSSAs have the obligation to comply with regulatory directives and requirements. Among the major regulatory obligations with which WSSAs need to comply include Tariff Conditions, Reporting requirements and the Performance Targets as stipulated in the Memorandum of Understanding between the WSSAs and the Ministry of Water. Additionally, DAWASCO is obliged to comply with the agreed performance targets indicated in its Lease Agreement with DAWASA. 5.1 Tariff Reviews and Compliance with Tariff Conditions During the period under review, EWURA approved eight tariff review applications from the water utilities as shown in Table 5.1 below. Except for Mtwara WSSA, whose tariff review application was for automatic adjustment, the rest water utilities tariff review applications were for multiyear tariff adjustments based on their business plans. There has been an increasing trend of submission of multiyear tariff review applications compared to previous year where only 2 water utilities submitted multiyear tariff applications. Water utilities have been encouraged to propose tariffs that are consistent with their Business Plans. 47

64 Applicant WSSA Table 5.1: Tariff Review Determinations Date of Receipt of Previous Average Approved Tariff (TZS/m3) Tariff Application Tariff (TZS/m3) Effective Date 2012/ / / 15 Mtwara Arusha Mbeya Tanga Musoma , Babati Moshi Tariff approvals are usually accompanied by conditions that need to be fulfilled by the applicant WSSA. Normally, the conditions have to be fulfilled within or before a specified duration. EWURA evaluates implementation of the tariff conditions by assigning weights to the implementation of each condition. The criteria for evaluation is detailed under Appendix 3: Table A3.3. During the year under review, Regional WSSAs and DAWASA/DAWASCO had to comply with a total of 60 conditions. Some of the conditions are those which were issued in the previous years but had to be fulfilled in the year 2012/13. On average, the overall compliance with the tariff conditions was 59.4%. Previously, in 2011/12, Regional WSSAs were to fulfil 67 conditions and they achieved 71% compliance. Therefore, the performance during the reporting period has unsatisfactorily declined. Figure 5.1 below gives a graphical presentation on the overall tariff conditions compliance for each Regional WSSA during the reporting period. Details of the tariff conditions for each Regional WSSA and DAWASA/DAWASCO including their compliance evaluation criteria are presented in Appendix 3: Table A3.2. It should be noted that all the new Regional WSSAs are still operating under the Automatic Tariff issued to DSNP WSSAs with only one condition, which was the submission of the reports to EWURA. However, they were not included in this year s performance evaluation. Figure 5.1: Evaluation of compliance with tariff conditions 48

65 Most of the Regional WSSAs and DAWASA/DAWASCO failed to timely submit the reports to EWURA, which is one of the common condition in all the tariff orders. It should be noted that Dodoma and Iringa WSSA complied fully with the only condition they had, which is to timely submit the reports to EWURA. Seven other WSSAs had also only this one condition, but they failed to fully comply with. Previously, in 2011/12, the best performer in complying with the tariff conditions was Tabora WSSA which attained 98% points; the least was Singida WSSA with 30% points. 5.2 Reporting Obligations Regional WSSAs report to EWURA in two (2) ways. Firstly, utilities submit monthly performance data through the Water Utilities Information System alternatively known as MajIs. This is a webbased software in which WSSAs enters their monthly and annual data. The data and reports in MajIs can be viewed by EWURA, MoW and the utility itself. Secondly, Regional WSSAs are obliged to submit their Annual Performance Reports including Financial Statements. Timely submission of reports by WSSAs is of utmost importance for regulatory purposes. Therefore, the criterion used for evaluation of the compliance with the reporting obligations is timely submission of the reports as required by the MoU between WSSAs and MoW MajIs Reports WSSAs are required to submit their monthly MajIs reports on or before 15 th day of the following month and the annual MajIs report by 31 st December each year. In previous years, MajIs was a stand-alone software which necessitated for installation in the utilities computers and the data was to be submitted to EWURA as an attachment. During the reporting year, a new web-based version of Majis was released, giving the WSSAs more flexibility on the usage and submission of their data. However, due to the system bugs that were observed on the use of the web-based MajIs, very few utilities managed to submit their monthly reports on time, and those whose reports were timely submitted, their data was of low quality. Therefore, in evaluating the utilities performance on submission of monthly MajIs reports, EWURA considered all the reports submitted by 30 th September, 2013 to be timely submitted. Except for DAWASCO, Songea WSSA, Lindi WSSA and the new Regional WSSAs, all other WSSAs submitted their monthly MajIs reports on time. Songea WSSA submitted only 6 of the 12 monthly reports. DAWASCO submitted only 7 of the monthly reports. Lindi WSSAs and the new Regional WSSAs of Bariadi, Njombe, Mpanda and Geita did not submit their MajIs monthly reports during the reporting period Draft Annual Technical and Financial Reports Before the end of 30 th September of every year, WSSAs are required to have submitted their draft Annual Technical Report and draft Financial Statements. By 31 st December, every year, WSSAs are required to submit their final Annual Technical Reports together with the audited Financial Statements. During the reporting period, 6 water utilities submitted both the draft annual technical report and draft financial statement on time; these were Arusha, Dodoma, Iringa, Shinyanga, Tanga and Babati WSSAs. On the other hand, 6 water utilities submitted their draft financial statements on time, however, their draft technical annual reports were submitted late. These include Mtwara, Mwanza, Songea, Tabora, Sumbawanga and Lindi WSSA. The rest of the water utilities submitted both of the reports late. The details on the reports submission is presented in Appendix 3: Table A

66 5.2.3 Compliance with MoU Performance Targets Ministry of Water signs a Memorandum of Understanding with the WSSAs which among other things contains agreed performance targets on several key performance indicators. During the year under review, the current MoU was in its second year of implementation. In order to determine utility s performance, EWURA selected eight key performance indicators out of several indicators agreed in the MoU. It is anticipated that WSSA s performance on the selected key indicators has significant impact on the overall performance of the utility. The new regional WSSAs of Bariadi, Mpanda, Njombe and Geita were not included in this year s evaluation since they have not yet signed the MoU with the Ministry of Water, and hence their performance targets are yet to be established. Six of the selected key performance indicators indicate utility s performance on rendering water supply services. These are; a) proportion of population living within the area with water network (%); b) water quality compliance (%) (E-coli and Turbidity) ; c) metering ratio (%); d) non-revenue water (%); e) working ratio; and f) personnel/1000 (W&S) connections. The remaining two indicators indicate utility s performance on rendering sewerage services. These are; a) proportion of the population connected with sewerage network (%); and b) waste water quality compliance (%) (BOD5 and COD). In order to evaluate and compare Regional WSSAs performance on the above selected indicators, EWURA assigns scores on each indicator based on utility s achievement towards attaining the set target. The maximum score that is attained by a good performing utility on each indicator is 75 points. Attainment of performance equal to the overall average (median) for each indicator is 50 points, while the least attainment on each indicator is 0 points. Intermediate performance scores are allocated pro rata values by linear interpolation between the minimum, average and maximum scores. In addition, a utility is awarded 25 points bonus for attaining or surpassing the set targets on the MoU on each indicator. Evaluation on the Regional WSSAs performances on water quality considered the average compliance with E-coli and Turbidity standards on drinking water reported by the utility and the EWURA s test results on the two parameters. The average of the two results is then used for evaluation. Likewise, the evaluation on performance on wastewater effluent quality standards considered the average of the two test results; EWURA results and the average reported by the utilities. Based on the evaluation criteria described above, the overall average performance of the Regional WSSAs during the reporting period was 61% declining from the 65.2% attained in 2011/12. Figure 5.2 below presents average points attained for each utility based on evaluation of all the six water supply indicators. The detailed computation for each indicator for every WSSAs is presented in Appendix 4. 50

67 Figure 5.2: Regional WSSAs evaluation on attainment of water supply performance targets Tanga WSSA has emerged the overall best performer in the selected water supply performance indicators. In 2011/12, Mbeya WSSA led the performance in this group. Sumbawanga WSSA has become the last in this group during the reporting period taking the position of Lindi WSSA in the previous year. On the two selected sewerage performance indicators, the ten Regional WSSAs rendering sewerage services attained an overall average of 58% during the reporting period. Previously, in 2011/12, the average achievement of these utilities was 54%. Therefore performance in this year has slightly improved. Figure 5.3 below presents average scores for attainment of targets on sewerage performance indicators and the detailed computation are presented in Appendix 4. Figure 5.3: Regional WSSAs evaluation on attainment of sewerage performance targets 51

68 As it was in the previous year, Moshi WSSAs continued to lead performance in this group during the reporting period, with further improvement on the average points from 70% achieved in 2011/12 to 100% during the reporting period. Arusha has dropped to the last position in this group taking the position of Morogoro WSSA in the previous year Compliance with the Lease Agreement between DAWASA and DAWASCO According to the Lease Contract signed between DAWASA and DAWASCO, the latter is required to meet and fulfill the Performance Targets as set in the Lease Contract. The targets in the Lease are divided into two categories i.e. the targets that are subjected to financial penalty to the Operator upon their non-compliance and those targets that are not subjected to financial penalty upon their non-compliance but are meant to measure the improvement of service delivery by the Operator. Overall evaluation of DAWASCO in terms of compliance with performance targets in the Lease Agreement with DAWASA shows that DAWASCO failed to comply with 41% of the targets subjected to financial penalties for noncompliance. DAWASCO failed to comply with performance targets on effluent quality, customer metering and reduction of water losses Appendix 3 Table A3.4 shows the compliance of DAWASCO with the performance targets subjected to financial penalty as stipulated in the Lease contract in detail. 6.0 PERFORMANCE RANKING Regional WSSAs are ranked according to their performance on rendering water supply and sewerage services. The major criterion used for performance ranking of the utilities is their performance in meeting the MoU targets on the selected key performance indicators, reports submission and compliance with the tariff conditions as evaluated in Chapter 5 of this report. Additionally, the Regional WSSAs get extra points when they qualify for the permanent licence from EWURA. The performance ranks are determined in two-fold; firstly the rank based on total points obtained in performance of water supply services and secondly rank based on total points obtained in performance of sewerage services. The new Regional WSSAs of Bariadi, Njombe, Geita and Mpanda are not involved in the ranking since they have not been evaluated as they have not yet signed the MoU with the Ministry of Water. 6.1 Water Supply Performance Ranking In order to rank the Regional WSSAs performance on water supply services, a maximum of 100 points is assigned to the utility based on its performance as follows; The utility s average performance on the achievement of the MoU targets on the selected performance indicators contributes 70 points; The remaining 30 points are awarded to the Regional WSSAs based on their compliance with various regulatory directives as discussed in Sections 5.1 and 5.2 of this report. The points are distributed as follows; Compliance with tariff conditions - 5 points Qualified for permanent license - 5 points Timely submission of each monthly MajIs reports - 10 points Timely submission of draft technical annual report - 5 points Timely submission of draft financial report - 5 points Based on the above ranking criteria, Tanga WSSA emerged the best utility in all the Regional WSSAs on water supply services, taking the position of Mbeya WSSA which dropped to the 11 th position. On the other hand, Lindi WSSA dropped to the last position, which was occupied by Kigoma WSSA in the previous year. Table 6.1 below presents the results on the performance ranking evaluation on water supply. 52

69 Table 6.1: WSSAs Ranking Scores on Water Supply Performance Indicators 53

70 Shinyanga WSSA made great improvement in performance of water supply services during the reporting period such that it moved up from 10 th to 2 nd position. Other utilities which made significant improvements are Iringa WSSA which moved up from 12 th to 4 th position and Kigoma WSSA which moved from the last position to 13 th during the reporting year. Significant drop in performance ranking during the reporting period was that of Songea WSSA which dropped from the 4 th position in 2011/12 to the 15 th position during the reporting period and Mbeya WSSA which moved from the top position to 11 th position over the same period. 6.2 Sewerage Services Performance Ranking Ranking of the Regional WSSAs performances on sewerage services was based solely on their achievements of the MoU targets for the two key performance indicators on sewerage services as evaluated in Section above. Moshi WSSA retained its 1 st position for another year. Meanwhile, Arusha WSSA dropped to the last position which was occupied by Morogoro WSSA during the previous year. Table 6.2 presents the results on sewerage performance ranking evaluation for the regional WSSAs. Table 6.2: WSSAs Ranking Scores on Sewerage Perfomance Indicators 54

71 7.0 KEY OBSERVATIONS AND RECOMMENDATIONS In the course of reviewing the performance of water utilities as presented in this report, a number of issues pertinent to sustainability of services provided by Regional WSSAs and DAWASCO have been disclosed. This section highlights the key issues observed and their corresponding recommendations and responsible institutions. The key issues observed are insufficient water production, high Non- Revenue Water, low water service coverage and high personnel costs as presented in Table 7.1 below. Table 7.1: Key Observations and Recommendations Key Issues Observations Recommendations Responsible 7.1 Diminishing Water Sources 7.2 High Non Revenue Water It has been observed that water demand in most of the Regional WSSAs and DAWASCO surpass both their installed capacities and actual water production. It has been further noted that the available water production capacities are underutilized. Among others, insufficient water distribution network coverage has been a salient feature of most utilities that are underutilizing their present water production capacities. Non-Revenue Water (NRW) has continued to be a challenge facing all Regional WSSAs and DAWASCO. None of the utilities has managed to achieve the recommended best practice of 20% or less. While strategies for reduction of NRW are fairly presented in their business plans, there is either a general lack of commitment to implement them or the strategies are more generic than being based on thorough analysis of causes of NRW in a particular utility. Regional WSSAs and DAWASA should design and implement short term and medium term measures to increase water production in their service areas. The implementation plans should be part of their Three Years Business Plans. Utilities should also explore opportunities available for financing their plans under Public Private Partnership (PPP) arrangements. In addition, utilities should implement strategies for optimally utilizing their present installed water production capacities. This includes extension of water supply networks to unserved areas. Water utilities should review NRW reduction strategies indicated in their business plans. Regional WSSAs and DAWASCO should implement NRW reduction strategies that will address particular NRW causes in their utilities. Additionally, WSSAs and DAWASCO should design and implement their own tailor-made short-term and long-term strategies to curb NRW using their internal capabilities. Regional WSSAs and DAWASA. Regional WSSAs, DAWASA and DAWASCO. 55

72 Key Issues Observations Recommendations Responsible 7.3 Low water service coverage 7.4 High personnel costs EWURA s Role: It has been observed that the proportion of population directly served with water is low for both Regional WSSAs and DAWASCO. It has also been observed in all the utilities, the population living in area with water network is higher than the population directly served. This implies that there is a potential for increasing coverage if the existing infrastructures are effectively utilized. Low water service coverage in the utilities is mainly contributed by insufficient water production, low network coverage and low customer base. It has been observed that personnel costs as percentage of revenue collection for most Regional WSSAs has been increasing over the past three years and is in most cases above the 30% limit stipulated in the MoU between WSSAs and the Ministry of Water. Lindi and Moshi WSSAs have especially reported the highest ratios of the personnel costs. Utilities should implement measures to increase service coverage in their service areas. Measures to be implemented include extension of distribution network as well design programs to promote customer connections. Regional WSSAs should take appropriate steps to ensure compliance with the requirements of the MoU regarding personnel costs. The report on implementation of the aforementioned steps should be submitted with their regular performance reports. Regional WSSAs, DAWASA and DAWASCO. Regional WSSAs, DAWASA and DAWASCO. (i) (ii) (iii) To provide guidance to authorities on planned strategies for increasing water production, reduction of NRW and extension of water distribution systems while reviewing their Business Plans; To facilitate PPP arrangements by providing templates for PPP contracts; and To monitor the implementation of Business Plans by Authorities. 56

73 APPENDICES APPENDIX 1: UTILITY PROFILES 57

74 ARUSHA WATER SUPPLY AND SANITATION AUTHORITY (ARUSHA WSSA) Water Utility Profile Arusha WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in Arusha City. Arusha WSSA is classified as Category A water utility and its area of responsibility has a total population of 416,442 persons as per 2012 census report. The present service area of the utility has a population density of 2002 persons/km 2.The utility draws water from one surface source (River Nduruma 17.96%) and groundwater sources (springs-45% and boreholes-37.04%). The Utility has a sewerage system with a sewer line of km and sewage treatment comprising of five ponds. The average daily flow into the ponds is 5,184m 3 /day. General Data About Water Utility Tariff Structure Total Water Connections 34,561 Total Waste Water Connections 4260 Total Staff 197 Annual O&M Costs TZS 4,809,316,952 Annual Water and Sewerage Collections TZS 5,430,401,005 Annual Water and Sewerage Billings TZS 5,742,004,000 Category Domestic Institutional Commercial Industrial Consumptio n Block TZS/m 3 TZS/m 3 TZS/m 3 TZS/m m m >15m ,040 Notes: The Charges at water Kiosk are TZS 10 /20LTS while at the Water Bottling plant TZS 6,110/m 3 SEWERAGE TARIFF Category Domestic Institution Commercial Industrial Bottling Industry TZS per m 3 of drinking water Priority of Needs Consumer Service Performance Highlights 1. Addition of new water sources; 2. Fund for Capital Projects and extension of water and sanitation services 3. Replacement and Improvement of the existing sewerage network and wastewater treatment plant respectively; 4. Reduction of Non Revenue Water to the acceptable level; 5. Pressure zoning of the distribution network; 6. Environmental protection of spring and river sources catchment areas. Average monthly water consumption is about 16m 3 per domestic connection with per capita consumption of 70lts/day. Water is available at an average of 12 hours a day.water quality meets the required standard with overall average compliance of 98.73%. During the year under review, there were 3440 consumer complaints reported and all were resolved. Arusha WSSA provides water supply direct to 70.4% of the population in its service area. The NRW has been increasing over the past three years to 40.6%. Bulk meters are installed at production points and all service connections are metered. Operating and working ratios are good at 0.84 and 0.77 respectively. Accounts receivable equivalent is 3.6 months. Average tariff at TZS 577 per m 3 is reasonable and sufficient to cover operating expenses and part of investment. Staff/1000 total connections ratio is satisfactory at 5.2. The number of new water connections made was 1455 while sewerage connections were

75 ARUSHA WATER SUPPLY AND SANITATION AUTHORITY (ARUSHA WSSA) Population 386,747 Production/Distribution Average daily production 38,702.96m 3 Production capacity/day 4,847 m 3 Treatment type Chlorine Dosing Storage capacity 12,697m 3 Service area 208km 2 Distribution pipe network km Service Connections Total water connections 34,561 Domestic water connections 32,049 Total sewer connections 4,260 Domestic sewer connections 3,349 Metered water connection 100% Service Indicators Water Service Coverage 70.4% Service hours 12 Per capita consumption 70l/c/d Average Tariff 577TZS/m 3 Complaints/1000 connection Efficiency Indicators Non-Revenue Water 40.6% Revenue collection efficiency 87.3% Unit production cost 374 TZS/m 3 Operating ratio 0.85 Working ratio 0.77 Account receivable 3.6 Staff/1000 total connections 5.2 Number of Sewer Blockage 41.41nr/km/year Income and Expenditure Annual operating income from water and sewerage services TZS 5,742,004,000 Government /Donor Grants TZS - Armotised Grants TZS 66,721,000 Other income TZS 502,959,000 TOTAL INCOME TZS 6,311,684,000 ANNUAL WATER USE 8,396, ANNUAL WATER AND SEWERAGE BILLING TZS 5,742,004,000 Water Production Expenses TZS 692,270,966 Water distribution expenses TZS 266,301,931 Maintenance and Repair TZS 541,848,762 Personnel Expenses TZS 1,715,469,000 Administration Expenses TZS 1,187,062,000 Other O&M Expenses TZS 406,364,294 Total O&M TZS 4,809,316,952 Depreciation & Amortization TZS 470,943,000 ANNUAL EXPENDITURE TZS 5,280,259,952 ANNUAL O&M COSTS TZS 4,816,266,952 59

76 DODOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (DODOMA WSSA) Water Utility Profile Dodoma WSSA is a fully autonomous public entity responsible for the overall operation and management of water supply and sanitation services in the Dodoma Municipality. Its area of operation has a total population of 410,956 people while the served population is 288,553 people. Population living in area with network is 334,382. The utility draws water from groundwater sources (borehole - 100%) having 22 boreholes in total located at the Mzakwe well field. Currently, 10 boreholes are functioning while the remaining 12 are not in operation due to various reasons. The Utility has a sewerage system with sewer line length of 76.2km, and sewage treatment is by waste stabilization ponds. The average daily flow into ponds is 4,690m 3 /day (1,711,850m3/year). General Data About Water Utility Tariff Structure Total water connections 27,134 Total waste water connections 4,560 Total staff 230 Annual O&M costs TZS 6,748,135,000 Annual water and sewerage collections TZS 6,983,160,513 Annual water and sewerage billing TZS 7,116,518,000 WATER TARIFF Category Domestic Institutional Commercial Worship Kiosks Bowser Houses TZS./m ,375 SEWERAGE TARIFF For all customer categories: Domestic Institutional Commercial Industrial Percentage of the water bill (%) OTHER CHARGES New connection Reconnection (water) Service charge (Domestic) Service charge (Non-domestic) Meter Rent TZS. TZS. TZS. TZS. TZS. 21,000 41,000 10,000 25,000 1,400 3,000 1,000 1,500 Priority of Needs 1. Rehabilitation of existing boreholes and development of new boreholes so as to increase water production and distribution. 2. Extension of lateral sewers and trunk sewer; Acquiring 6Hacters of land and construct new waste stabilization ponds 3. Reduce high levels of NRW by rehabilitation of dilapidated transmission and distribution network line. Consumer Service Performance Highlights Average monthly consumption is about 16m 3 per connection, with per capita consumption of 74lts/c/day. Water is available at an average 19 hours per day. Water quality compliance with WHO set standards is good with E-coli and turbidity having 100% compliance. Dodoma WSSA provides water supply direct to 70.2% of the population in its service area. The NRW is still high at 34.1%. All customers are metered thus having a metering ratio of 100%. Operating ratio stands at 1.02 and accounts receivable equivalent is 2.6 months. Average tariff stands at TZS. 822 per m 3 which covers operating expenses. The ratio of staff per 1000 total connections ratio is

77 DODOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (DODOMA WSSA) Total Population in the Service Area: 410,956 Production/Distribution Average daily production 29,600m 3 Production capacity/day 45,000m 3 Treatment type Chlorination Storage capacity 78,700m 3 Length of distribution network 301km Service Connections Total water connections 27,134 Domestic water connections 25,397 Total sewer connections 4,560 Domestic sewer connections 4,133 Metering ratio 100% Service Indicators Water service coverage 70.2% Average service hours 19 Per capita consumption 74lts/c/d Average tariff TZS 822/m 3 ANNUAL WATER USE 10,812,272 m 3 Efficiency Indicators Non-revenue water 34.11% Unit production costs TZS 723.7/m 3 Operating ratio 1.02 Working ratio 0.88 Account receivable 2.6 months Staff/1000 connections 7.4 Income and Expenditure Annual operating income from water and sewerage services TZS 7,116,518,000 Government /Donor Grants TZS - Amortized Grants TZS 485,297,000 Other income TZS 530,265,000 TOTAL INCOME TZS 8,132,080,000 Water Production Expenses TZS 1,573,319,000 Water distribution expenses TZS 820,417,000 Maintenance and Repair TZS 198,694,000 Personnel Expenses TZS 2,273,835,000 Administration Expenses TZS 1,473,520,000 Other O&M Expenses TZS 408,350,000 Total O&M expenses TZS 6,748,135,000 Depreciation & Amortization TZS 1,076,503,000 ANNUAL EXPENDITURE TZS 7,824,638,000 ANNUAL WATER AND SEWERAGE BILLING TZS 7,116,518,000 ANNUAL O&M COSTS TZS 6,748,135,000 61

78 IRINGA WATER SUPPLY AND SANITATION AUTHORITY (IRINGA WSSA) Water Utility General Data About Water Utility Profile Iringa WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in the Iringa Municipality. Iringa WSSA is classified as a Class A water utility and its area of operation has a total population of 151,345 people while the current served area of the utility has a population of 145,000. Proportion of Population Living in the area with water network is 95.8%. The utility draws water from surface (River - 87%) and groundwater sources (spring - 13%) and has a conventional treatment plant. The utility has a sewerage system with a sewer line length of 40.7 km, and sewerage treatment is by waste stabilization ponds. The average daily flow into the ponds is 1,125m 3 /day. Total water connections 14,628 Total waste water connections 1,435 Total staff 97 Annual O&M costs TZS 3,436,153,541 Annual water and sewerage collections TZS 3,156,939,153 Annual water and sewerage billing TZS 3,480,813,492 Tariff Structure WATER TARIFF Category Domestic Institutional Commercial Industrial Kiosks TZS./m Flat rate 6,275 13,180 9,400 13,180 6,275 (TZS/month) SEWERAGE TARIFF Category Domestic Institutional Commercial Industrial % of the water bill Flat rate (TZS/month) 3,000 8,000 8,000 8,000 OTHER CHARGES New connection Reconnection (water) Service charge (Domestic) Meter Rent Charge Cesspit emptying TZS. TZS. TZS. TZS. TZS. 20,000 50,000 10,000 20,000 2,000-5, ,000 5,000 50,000 Priority of Needs Consumer Service 1. Reduction of NRW; 2. Increase number of connections to the sewerage network; 3. Improve performance of waste stabilization ponds to ensure compliance with effluent standards; and 4. Improve revenue collection efficiency Average monthly consumption is about 14.4m 3 per domestic connection, with per capita consumption of 113lts/day. Water is available at an average of 24 hours per day. Water quality compliance with WHO set standards is good with 100% compliance reported for E-Coli and Turbidity. There were 25.6 pipe breaks per km per year recorded and sewer blockages per km per year during the year. Performance Highlights Iringa WSSA provides water supply direct to 95.8% of the population in its service area. NRW is still high at 46.5%. All Iringa WSSA s customers are metered. Operating ratio is also high at Accounts receivable equivalent is 3.2 months. Average tariff stands at TZS. 852per m 3 which covers operating expenses. The ratio of Staff per 1000 total water and sewerage connections is

79 IRINGA WATER SUPPLY AND SANITATION AUTHORITY (IRINGA WSSA) Total Population in the Service Area: 151,345 Production/Distribution Average daily production 18,070m 3 Production capacity/day 24,000m 3 Treatment type Conventional Storage capacity 6,700m 3 Length of distribution network km Service Connections Total water connections 14,628 Domestic water connections 13,695 Total sewer connections 1,435 Domestic sewer connections 1,326 Metering ratio 100% ANNUAL WATER USE 6,595,768 m 3 Service Indicators Water service coverage 95.8% Average service hours 24 Per capita consumption 113l/c/d Average tariff TZS 852 /m 3 Efficiency Indicators Non-Revenue Water 46.5% Unit Production Cost TZS 521/m 3 Operating Ratio 1.77 Revenue Collection efficiency 90% Account Receivable 3.2months Staff/1000 connections 6 Income and Expenditure Annual operating income from water and sewerage services TZS 3,480,813,492 Government /Donor Grants TZS 60,494,352 Amortized Grants TZS 2,810,606,884 Other income TZS 214,107,243 TOTAL INCOME TZS 6,566,021,971 Water Production Expenses TZS 1,157,114,689 Water distribution expenses TZS 50,567,158 Maintenance and Repair TZS 296,746,285 Personnel Expenses TZS 1,108,483,593 Administration Expenses TZS 729,943,022 Other O&M Expenses TZS 93,298,794 Total O&M expenses TZS 3,436,153,541 Depreciation & Amortization TZS 3,101,021,696 ANNUAL EXPENDITURE TZS 6,537,175,237 ANNUAL WATER AND SEWERAGE BILLING TZS 3,480,813,492 ANNUAL O&M COSTS TZS 3,436,153,541 63

80 MBEYA WATER SUPPLY AND SANITATION AUTHORITY (MBEYA WSSA) Water Utility Mbeya WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Mbeya City. Mbeya WSSA is classified as a Class A water utility and its area of operation has a total population of 392,179. Proportion of Population Living in the area with water network is 96.9%. The utility draws water from surface (River - 25%) and groundwater sources (spring - 75%). The Utility has a sewerage system with a sewer line length of 100 km and sewage treatment by waste stabilization ponds. General Data About Water Utility Tariff Structure Total water connections 34,248 Total sewerage connections 1,261 Total staff 222 Annual O&M costs TZS 5,262,852,063 Annual water and sewerage collections TZS 4,611,657,895 Annual water and sewerage billing TZS 5,292,612,576 WATER TARIFF Category Domestic Institutional Commercial Industrial Kiosks TZS./m ,090 TZS 10 per 20ltrs SEWERAGE TARIFF Category Domestic Institutional Commercial Industrial TZS/m3 of water consumed Flat rate 9,000 11,000 16,500 16,500 OTHER CHARGES New connection Reconnection (water) Service charge (Domestic) Service charge (Nondomestic) New connection TZS. TZS. TZS. TZS. TZS. 11,000-22,000 10,000-15,000 2,000 2,500 10,000 30,000 50,000 Priority of Needs Consumer Service 1. Reduction of NRW 2. Promoting sewerage connections in order to increase sewerage coverage. Average monthly domestic consumption is about 14m 3 per connection, with per capita consumption of 58.7lts/day. Water is available at an average 21 hours per day. Water quality compliance to WHO set standards is reported to be good with both E-Coli and Turbidity having 100% compliance. There were 0.5 pipe breaks per km per year recorded and 0.86 sewer blockages per km per year during the year. Performance Highlights Mbeya WSSA provides direct water supply to 86.79% of the population living in the area with water network. NRW is still high at 35.2%. A bigger portion of customers are metered and currently, the metering ratio is 99%. Operating ratio is Accounts receivable equivalent is 3 months. Average tariff stands at TZS 436 per m 3 which covers operating expenses. The ratio of staff per 1000 active water and sewerage connections is

81 MBEYA WATER SUPPLY AND SANITATION AUTHORITY (MBEYA WSSA) Total Population in the Service Area: 385,275 Production/Distribution Average daily production 37,609m 3 Production capacity/day 51,446m 3 Treatment type Conventional Storage capacity 23,550m 3 Length of distribution network 682km Service Connections Total water connections 34,248 Domestic water connections 33,197 Total sewer connections 1,261 Domestic sewer connections 1,160 Metering ratio 99% Service Indicators Water service coverage 96.9% Average service hours 21 Per capita consumption 58.7l/c/d Average tariff TZS 513/m 3 ANNUAL WATER USE 13,727,251 m 3 Efficiency Indicators Non-Revenue Water 35.2% Unit production cost TZS 383/m 3 Operating ratio 1.2 Revenue collection efficiency 93% Account receivable 2.9months Staff/1000 connections 6.3 Income and Expenditure Annual operating income from water and sewerage services TZS 5,292,612,576 Government /Donor Grants TZS - Amortized Grants TZS 1,374,694,757 Other income TZS 537,832,414 TOTAL INCOME TZS 7,205,139,747 Water Production Expenses TZS 1,413,546,419 Water distribution expenses TZS 259,701,182 Maintenance and Repair TZS 167,873,856 Personnel Expenses TZS 2,059,452,006 Administration Expenses TZS 1,141,820,401 Other O&M Expenses TZS 220,458,199 Total O&M expenses TZS 5,262,852,063 Depreciation & Amortization TZS 1,857,599,995 ANNUAL EXPENDITURE TZS 7,120,452,058 ANNUAL WATER AND SEWERAGE BILLING TZS 5,292,612,576 ANNUAL O&M COSTS TZS 5,262,852,063 65

82 MOROGORO URBAN WATER SUPPLY A8mm ND SEWERAGE AUTHORITY (MOROGORO WSSA) Water Utility Profile Morogoro WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Morogoro Municipality. Its area of operation has a total population of 315,866 people while the currently served area of the utility with network has a population of 284,279. The current percentage for population coverage is 72%. The Utility draws water from surface (River 21.48%, dam % and CCT borehole 0.75%). The Utility has a sewerage system with a sewer line length of 31 km and sewage treatment by waste stabilization ponds. General Data About Water Utility Tariff Structure Total water connections 23,929 Total waste water connections 1,139 Total staff 163 Annual O&M costs TZS 8,037,638,554 Annual water and sewerage collections TZS 4,387,080,991.0 Annual water and sewerage billing TZS 3,755,649,873.0 WATER TARIFF Category Domestic Institutional Commercial Industrial Kiosks TZS./m , Flat rate (TZS.) 7,200 7,200 7,200 7,200 - SEWERAGE TARIFF Category Domestic Institutional Commercial Industrial TZS./m 3 ( of the water billed) Flat rate 1,600 1,600 1,600 1,600 OTHER CHARGES New Reconnection connection (water) Service charge (Domestic) Service charge (Nondomestic) Emptying into ponds Fixed charge (New Sewer connection) TZS. TZS. TZS. TZS. TZS. TZS. 35,000 10,000 1,500 2,000 3,000 30,000 Priority of Needs Based on its Annual report 2012/2013, Morogoro WSSA has set up priority areas to be: 1. Replacement of old infrastructures 2. Improvement of sewerage coverage 3. Protection of water sources especially the protection of Mindu dam 4. Identification of new water sources to cater for the rising demand Consumer Service Performance Highlights Average monthly consumption is about 16m 3 per connection, with per capita consumption of 29lts/day. Water is available at an average of 17 hours per day. Water quality compliance with WHO set standards are good with E-coli having 100% and turbidity is having 96% compliance. There were pipe breaks per km per year recorded and 24 sewer blockages per km per year during the year under review. Morogoro WSSA provides water supply direct to 72% of the population in its service area. NRW has improved and stands at 23%. A bigger portion of customers are metered. The current metering ratio is 91%. Operating ratio is 1.37 and accounts receivable duration is equivalent to 1.1 month. Average tariff stands at TZS. 770 per m 3. The ratio of staff per 1000 total connections ratio is

83 MOROGORO URBAN WATER SUPPLY A8mm ND SEWERAGE AUTHORITY (MOROGORO WSSA) Total Population in the service area: 315,866 Production/Distribution Average daily production 25,000m 3 Production capacity/day 30,000m 3 Treatment type Conventional Storage capacity 9783m 3 Length of distribution network 337km Service Connections Total water connections 23,929 Domestic water connections 22,608 Total sewer connections 1,139 Domestic sewer connections 918 Metering ratio 91% Service Indicators Water service coverage 72% Average service hours 17 Per capita consumption 29lts/c/d Average tariff TZS 770/m 3 ANNUAL WATER USE 8,572,500 m 3 Efficiency Indicators Non-revenue water 23% Unit production costs TZS 636/m 3 Operating ratio 1.37 Account receivable 0.7 months Staff/1000 connections 6.5 Income and Expenditure Annual operating income from water and sewerage services TZS 5,758,124,054 Government /Donor Grants TZS - Amortized Grants TZS - Other income TZS 103,429,099 TOTAL INCOME TZS 5,861,553,153 ANNUAL WATER AND SEWERAGE BILLING TZS 5,758,124,054 Water Production Expenses TZS 1,565,457,167 Water distribution expenses TZS 288,449,381 Maintenance and Repair TZS 163,978,529 Personnel Expenses TZS 2,239,262,990 Administration Expenses TZS 1,109,125,617 Other O&M Expenses TZS 88,052,759 Total O&M expenses TZS 5,454,326,443 Depreciation & Amortization TZS 2,583,312,111 ANNUAL EXPENDITURE TZS 8,037,638,554 ANNUAL O&M COSTS TZSTZS 5,454,326,443 67

84 MOSHI URBAN WATER SUPPLY AND SANITATION AUTHORITY (MOSHI WSSA) Profile Water Utility Moshi Urban Water Supply and Sanitation Authority (Moshi WSSA), is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in the Moshi Municipality. Moshi WSSA is classified as Category A water utility and its area of responsibility has a total population of 184,292 people. The operational area of the utility has a population density of 2143 persons/km 2. The utility draws water from three natural spring sources contributing about 84.56% of the daily water production and from three boreholes contributing the remaining 15.44%. The combined production capacity is 31,432m 3 /day while water demand stands at 44,307m 3 /day. The utility has a sewerage system with sewer line of 56 km in length, and wastewater stabilization ponds as a wastewater treatment system. General Data About Water Utility Tariff Structure Total water connections 20,776 Total waste water connections 2,260 Total staff 156 Annual O&M costs TZS 3,496,480,330 Annual water and sewerage collections TZS 3,162,386,347 Annual water and sewerage billings TZS 3,667,178,295 Category Domestic Institutional Commercial Industrial Consumption Block TZS/m 3 TZS/m 3 TZS/m 3 TZS/m 3 <10 m >10m 3 < 30 m >30m Notes: The Charges at water kiosks are TZS 385 /m 3. SEWERAGE TARIFF Category Domestic Institutional Commercial Industrial TZS per m 3 of water consumption TZS/m 3 TZS/m 3 TZS/m 3 TZS/m Priority of Needs Consumer Service Performance Highlights 1. Additional water sources 2. Reduction of non revenue water 3. Expansion and increase number of sewerage connections 4. Customer outreach programme. Average monthly water consumption is about 19m 3 per domestic connection with daily per capita consumption of 73 liters. Water is available at an average of 20 hours a day.water quality is good, with overall average compliance of There were 4,502 consumer complaints recorded and were all resolved. Moshi WSSA provides water supply direct to 92.4% of the population in its service area. The NRW is still high at 28.44%. All production points, district zones and service connections are metered. Operating ratio is satisfactory at 0.96 and working ratio at Moshi WSSA is providing water service by rationing due to decrease in water production as well as increase in water demand. Accounts receivable equivalent is 3.3 months. Average tariff at TZS 469per m 3 is fair and enough to cover operating expenses and part of investment. Staff/1000 connections ratio is fair at 7. 68

85 MOSHI WATER SUPPLY AND SANITATION AUTHORITY (MOSHI WSSA) Population 184,292 Production/Distribution Average daily production 25,072m 3 Production capacity/day 31,432m 3 Treatment type Chlorine dosing Storage capacity 8,885m 3 Service area 86km 2 Length of the network 355.5km Service Connections Total water connections 20,776 Domestic water connections 18,855 Total sewer connections 2,260 Domestic sewer connections 1,682 Metered connections 100% Service Indicators Water service coverage 89.4% Service hours 20hrs Per capita consumption 73l/c/d Average tariff 469TZS/m3 Complaints/1000 connections 195 Efficiency Indicators Non-Revenue Water 28.4% Revenue collection efficiency 91% Unit production cost 429.8TZS/m3 Operating ratio 0.96 Working ratio 0.85 Account receivable 3.3 Staff/1000 connections 7 Income and Expenditure Annual operating income from water and sewerage services TZS 3,667,178,245 Government /Donor Grants TZS - Amortized Grants TZS 123,185,798 Other income TZS 422,599,134 TOTAL INCOME TZS 4,212,963,177 ANNUAL WATER USE 6,553,040m 3 ANNUAL WATER AND SEWERAGE BILLING TZS 3,667,178,295 Water Production Expenses TZS 254,296,423 Water distribution expenses TZS 199,303,798 Maintenance and Repair TZS 240,603,372 Personnel Expenses TZS 1,619,322,799 Administration Expenses TZS 1,025,868,965 Other O&M Expenses TZS 157,084,973 Total O&M expenses TZS 3,496,480,330 Depreciation & Amortization TZS 436,231,515 ANNUAL EXPENDITURE TZS 3,932,711,845 ANNUAL O&M COSTS TZS 3,496,480,330 69

86 MTWARA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (MTWARA WSSA) Water Utility Profile Mtwara WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Mtwara Municipality. Its area of operation has a total population of 108,299 persons while the current served area of the utility has a population of The current percentage population coverage is 88%. The utility draws water from surface and groundwater sources, The major source being the borehole. The utility has neither sewerage system nor sewage treatment plant. General Data About Water Utility Tariff Structure Total water connections 8,442 Total waste water connections - Total staff 63 Annual O&M costs TZS 1,380,491,313 Annual water and sewerage collections TZS 877,723,021.0 Annual water and sewerage billing TZS 1,089,396,700 WATER TARIFF Category Domestic Institutions Commerci Industrial Kiosks al TZS./m ,100 1, Flat rate (TZS.) 5,000 15, OTHER CHARGES New connection (water) Reconnection Service charge (Domestic) TZS. TZS. TZS. TZS. 15,000 10,000 1,000 2,000 Service charge (Non-domestic) Priority of Needs Consumer Service Based on its business plan and assistance under WSDP projects, Mtwara WSSA has set up priority areas to be: 1. Hours of service increased from 13 to 24hrs per day by 2015 by installation of new pumps at well-field 2. Improve water quality to conform TBS standards 3 by rehabilitating Maghamba treatment plant 3. Water supply coverage be increased from 90 to 95% by 2015 by rehabilitation of the existing distribution network and extending pipeline network to uncovered areas 4. Income and collection be improved to attain 100% collection efficiency 5. To have an efficiently managed public institution in place 6. Sanitation services improved be by 2015 by construction of new sewerage system. Average monthly consumption is about 11m 3 per connection, with per capita consumption of 26.7lts/c/day. Water is available at an average 14 hours per day. Water quality compliance with WHO set standards for E-coli was 76% compliance and Turbidity having 100% compliance. There were pipe breaks per km per year recorded during the year. Performance Highlights Mtwara WSSA provides water supply direct to 51.6% of the population in its service area. There is increase in NRW which currently stands at 37.9%. All customers are metered thus having metering ratio of 100%. Operating ratio is at 1.37 while accounts receivable equivalent is 3.9 months. Average tariff stands at TZS per m 3. The ratio of staff per 1000 total connections ratio is

87 MTWARA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (MTWARA WSSA) Population in the service area: 108,299 Production/Distribution Average daily production 6,389 m 3 Production capacity/day 8,500m 3 Treatment type Chlorination Storage capacity 3,715m 3 Length of distribution network 221km Service Connections Total water connections 8,442 Domestic water connections 7,980 Total sewer connections - Domestic sewer connections - Metering ratio 100% ANNUAL WATER USE 2,310,214 m 3 Service Indicators Water service coverage 51.6% Average service hours 13 Per capita consumption 26.7lts/c/d Average tariff TZS 696/m 3 Efficiency Indicators Non-revenue water 41.4% Unit production costs TZS 740/m 3 Operating ratio 1.37 Account receivable 3.9 months Staff/1000 connections 7.2 Income and Expenditure Annual operating income from water and sewerage services TZS 1,089,396,700 Government /Donor Grants TZS 22,553,069 Amortized Grants TZS 32,590,338 Other income TZS 169,584,666 TOTAL INCOME TZS 1,314,124,773 Water Production Expenses TZS 286,270,749 Water distribution expenses TZS 101,221,369 Maintenance and Repair TZS 24,113,086 Personnel Expenses TZS 623,141,709 Administration Expenses TZS 324,684,813 Other O&M Expenses TZS 21,059,587 Total O&M expenses TZS 1,380,491,313 Depreciation & Amortization TZS 345,691,492 ANNUAL EXPENDITURE TZS 1,726,182,805 ANNUAL WATER BILLING TZS 1,089,396,700 ANNUAL O&M COSTS TZS 1,380,491,313 71

88 MUSOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (MUSOMA WSSA) Water Utility General Data About Water Utility Tariff Structure Profile Musoma WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in the Musoma Municipality. Its area of responsibility has a total population of 134,327 people, of which 89,341 people are living within the area with water supply network. The water supply network has a total length of 120km of pipelines. The utility draws water from 3 Lake Victoria intakes, namely Mwisenge, Mutex and Bweri intakes, Mwisenge produces about 98% of water produced by MUWASA. The combined installed production capacity is 15,188m 3 /day. During the reported year, water production was 58.7% of water demand. The utility has no sewerage system. MUWASA has 78 employees, of which 16 are permanent and the rest are long term and short term contractual staff of different qualifications and professions.. Total water connections 9,569 Total waste water connections NIL Total staff 78 Annual O&M costs TZS 1,722,498,706 Annual collections TZS 1,600,949,724 Annual billings& sewerage sales TZS 1,519,896,974 Category Domestic Institutional Commercial Industrial Consumpti on Charge TZS/m 3 TZS/m 3 TZS/m 3 TZS/m Notes: The Charges at water kiosks are TZS 335/m 3. Flat rates charges Category Domestic Institutional Commercial Industrial Consumpti on Charge TZS/month TZS/month TZS/month TZS/month 8,000 24,000 24,000 34,000 OTHER CHARGES New connection (water) Service charge TZS. TZS. 25,000-50,000 2,000-3,000 Priority of Needs Consumer Service Performance Highlights 1. Reduction of Non-Revenue Water. 2. Improvement on production to cater for demand 3. Improvement on service coverage. 4. Metering. 5. Construction of water treatment plant and sewerage system 6. Improvement on storage capacity Average monthly consumption is about 13.5m 3 per domestic connection. Water is available at an average of 18.9 hours a day.water quality is poor as the average compliance was reported as 49% with regards to turbidity, residual chlorine, ph and E-coli parameters. There were 1,808 consumer complaints recorded and 364 water pipe leaks repaired during the year. Musoma WSSA provides water supply direct to 66.5% of the population in its service area. The NRW is still high at 45.3%. Operating ratio is at Accounts receivable equivalent is 2.7 months. Average tariff at TZS 672 per m 3 to cover operating expenses and part of investment. Staff/1000 connections ratio is not good at 8 72

89 MUSOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (MUSOMA WSSA) Total Population: 134,327 Production/Distribution Average daily production 10,461m 3 Production capacity/day 15,188m 3 Treatment type Chlorination Storage capacity 1,607.5m 3 Service area 63km 2 Distribution pipe network 120km Service Connections Total water connections 9,569 Domestic water connections 8,841 Total Sewer connections NIL Domestic sewer connections NIL Service Indicators Water service coverage 66.5% Service hours 18.9hrs Per capita consumption 30.6l/c/d Average tariff 672/m 3 ANNUAL WATER USE 3,818,406 m 3 Efficiency Indicators Non-Revenue Water 45.3% Unit production cost 451 TZS/m 3 Operating Ratio 1.06 Account receivable 2.7 Staff/1000 connections 8 Income and Expenditure Annual operating income from water and sewerage services TZS 1,519,896,974 Government /Donor Grants TZS 115,063,648 Amortized Grants TZS 33,593,362 Other income TZS 107,241,492 TOTAL INCOME TZS 1,775,795,476 Water Production Expenses TZS 497,466,358 Water distribution expenses TZS 183,210,227 Maintenance and Repair TZS 145,464,366 Personnel Expenses TZS 654,802,561 Administration Expenses TZS 225,491,916 Other O&M Expenses TZS 16,063,279 Total O&M expenses TZS 1,722,498,706 Depreciation & Amortization TZS - ANNUAL EXPENDITURE TZS 1,722,498,706 ANNUAL WATER BILLING TZS 1,519,896,974 ANNUAL O&M COSTS TZS 1,722,498,707 73

90 MWANZA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (MWANZA WSSA) Water Utility General Data About Water Utility Tariff Structure Profile Mwanza WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in the Mwanza City. Its area of responsibility has a total population of 736,939 people. The water supply network has a total length of 631.7km of pipelines. The utility draws water from Lake Victoria at three different locations namely, Capri point, Chakula Barafu and Luchelele. The combined production capacity is 108,000m 3 /day. Water production is half of the water demand in which the proportion of water production to water demand stood at 57.2%. The utility has a sewerage system with a sewer line of 61km long and wastewater stabilization ponds as a wastewater treatment system. Mwanza WSSA has 285 employees, 282 permanent and long-term contractual and 3 short-term contractual staff of different qualifications and professions. Total water connections 42,486 Total waste water connections 3,192 Total staff 285 Annual O&M costs TZS 11,866,490,445 Annual collections TZS 13,199,871,217 Annual billings& sewerage sales TZS 12,381,552,842 Category Domestic Institutiona l Commercia l Industrial Bottling Constructio n Consumpti on Charge TZS/m 3 TZS/m 3 TZS/m 3 TZS/m 3 TZS/m 3 TZS/m ,045 1,330 2,375 1,330 Notes: The Charges at water Kiosks are TZS 385 /m 3. SEWERAGE TARIFF Category Domestic Institutional Commercial Industrial TZS per month Priority of Needs Consumer Service Performance Highlights OTHER CHARGES New Reconnection Service Service charge New connection (sewer) connection (water) charge (Domestic) (Non-domestic) TZS. TZS. TZS. TZS. TZS. 21, ,000 7,500-20,000 1,400 2,000-6,000 5, Reduction of Non-Revenue Water. 2. Improve water and sewerage coverage%. 3. Recovery of arrears 4. Improved water production Average monthly consumption is about 14.6m 3 per domestic connection. Water is available at an average of 22 hours a day.water quality is good, with 100% of water samples taken during the year passing the E-coli tests. There were 2,293 consumer complaints recorded and 21 water pipe breaks per year. Mwanza WSSA provides water supply direct to 72.5% of the population in its service area. NRW is still high at 40.7%. All production points, district zones are metered as well as all service connections. Operating ratio is at Accounts receivable equivalent is 2.73months. Average tariff is TZS per m 3 is fair to cover operating expenses and part of investment. Staff/1000 connections ratio is good at

91 MWANZA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (MWANZA WSSA) Total Population in the Service Area: 736,939 Production/Distribution Average daily production 63,186m 3 Production capacity/day 108,000m 3 Treatment type Conventional Storage capacity 36,464m 3 Service area 450km 2 Length of distribution network 631.7km Service Connections Total water connections 42,486 Domestic water connections 39,060 Total sewer connections 3,192 Domestic sewer connections 2,523 Metered connections 40,790 ANNUAL WATER USE 23,062,806 m 3 Service Indicators Water service coverage 72.5% Average service hours 22 Per capita consumption 40.6l/c/d Average tariff 805 TZS/m 3 Efficiency Indicators Non-Revenue Water 40.7% Unit production cost 514.5TZS/m 3 Operating ratio 1.12 Account receivable 2.73months Staff/1000 connections 6.2 Income and Expenditure Annual operating income from water and sewerage services TZS 12,381,552,842 Government /Donor Grants TZS - Amortized Grants TZS 1,772,269,498 Other income TZS 371,877,064 TOTAL INCOME TZS 14,525,699,404 Water Production Expenses TZS 3,949,029,833 Water distribution expenses TZS 451,352,942 Maintenance and Repair TZS 672,519,760 Personnel Expenses TZS 4,032,316,511 Administration Expenses TZS 2,172,646,304 Other O&M Expenses TZS 588,625,095 Total O&M expenses TZS 11,866,490,445 Depreciation & Amortization TZS 2,450,147,781 ANNUAL EXPENDITURE TZS 14,316,638,226 ANNUAL WATER BILLING TZS 12,381,552,842 ANNUAL O&M COSTS TZS 11,866,490,445 75

92 SHINYANGA URBAN WATER SUPPLY AND SANITATION AUTHORITY (SHINYANGA WSSA) Water Utility General Data About Water Utility Tariff Structure Shinyanga WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in Shinyanga Municipality. Its area of operation has a total population of 161,391 people (as per 2012 census data) while population directly served with water is 70,975, equivalent to 44% of the total population. This has significantly dropped from the lasy year s estimation of 71.2%. Shinyanga WSSAs explained that the decrease is due to the expansions of the Shinyanga Municipality area from 12 to 17 wards, consequently increasing the service area. Also the census data has provided much more reliable population figures than those which were estimated in the previous year. Shinyanga WSSA depends mainly on bulk water purchase from KASHWASA as its source of water supply. However, it continued to operate its own water source - the Ningh wa dam as additional water supply, and also to keep the source functional as a standby water supply in case of failures of the bulk water supply. All the water sources and the bulk water supply have combined capacity of 53,100m 3 /day which is higher above the daily water demand of 16,848 m 3 /day. However, due to insufficient water distribution network coverage, only an average of 8,520 m 3 /day was supplied. Shinyanga WSSA does not render sewerage services, but plans are underway to procure a consultant to do the feasibility study. Shinyanga WSSA has a total of 74 staff which translate to a staff per 1000 connections ratio of 5.1. Total active water connections 14,326 Total staff 74 Annual O&M costs TZS 2,531,588, Annual water collection (from water sales) TZS 2,573,566, Annual water billing TZS 2,467,647, WATER TARIFF AND CHARGES Category Domestic Institutions Commercial Industrial Kiosks TZS./m Flat rate (TZS.) 8,250 18,750 18, Service Charges (TZS/Month) 2,000 3,500 3,500 3,700 - Priority of Needs Consumer Service 1. Lack of sewerage services; 2. Failure to extend the water distribution network to un-supplied areas; Average monthly consumption is about 14.1 m 3 per connection, with per capita consumption of 93.6lts/day. Water is available at an average of 21.3 hours per day. Water quality compliance with WHO set standards is generally good with E-coli and Turbidity having 100% and 96% compliance respectively. There were 0.3 pipe breaks/leaks per km per year recorded. Performance Highlights Service coverage has decreased from 71.2% in the previous year to 44% in this year. NRW has improved significantly from an average of 30.7% reported last year to an average of 22% during the reporting period. Metering ratio has reached 100%. Accounts receivable equivalent is 2.6 months. Average tariff stands at TZS per m 3 which covers operating expenses. Staff per 1000 total connections ratio has improved from 6.6 in the last year to 5.1 during the reporting period. 76

93 SHINYANGA URBAN WATER SUPPLY AND SANITATION AUTHORITY (SHINYANGA WSSA) Total Population in the Service Area:161,391 Production/Distribution Average daily production 8,520 m 3 Production capacity/day 53,100 Treatment type Conventional Storage capacity 21,840m 3 Length of distribution network 439.6km Service Connections Total water connections 14,566 Domestic water connections 13,525 Metering ratio 99.6% Domestic metered connections 13,525 ANNUAL WATER USE 3,109,843 m 3 Service Indicators Water service coverage 44% Average service hours 21.3 Per capita consumption 93.6l/c/d Average tariff TZS 923/m 3 Efficiency Indicators Non-revenue water 22% Unit production cost TZS 442/m 3 Account receivable 2.6 months Operating Ratio 1.11 Staff/1000 connections 5.1 Income and Expenditure Annual operating income from water and sewerage services Government /Donor Grants Amortized Grants Other income TOTAL INCOME Water Production Expenses Water distribution expenses Maintenance and Repair Personnel Expenses Administration Expenses Other O&M Expenses Total O&M Depreciation & Amortization ANNUAL EXPENDITURE TZS 2,467,647,210 TZS - TZS 222,784,295 TZS 316,515,923 TZS 3,006,947,428 TZS 1,374,394,001 TZS 42,289,913 TZS 61,293,420 TZS 619,199,420 TZS 411,500,276 TZS 22,911,363 TZS 2,531,588,393 TZS 550,797,618 TZS 3,082,386,011 ANNUAL WATER BILLING TZS 2,467,647,210 ANNUAL O&M COSTS TZS 2,531,588,393 77

94 SONGEA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (SONGEA WSSA) Water Utility Songea WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Songea Municipality. Its area of operation has a total population of 203,309. Proportion of Population Living in the area with water network is 64.2%. The utility draws water from surface (spring 68% and river/shallow well - 32%). The Utility has a sewerage system with a sewer line length of 37 km and sewage treatment is by waste stabilization ponds. The average daily flow into ponds is 1,170m 3 /day (426,950m 3 /year). General Data About Water Utility Tariff Structure Total water connections 10,666 Total waste water connections 1,054 Total staff 58 Annual O&M costs TZS 1,832,013,732 Annual water and sewerage collections TZS 1,211,557,037 Annual water and sewerage billing TZS 1,351,644,555 WATER TARIFF Category Domestic Institutional Commercial Industrial Kiosks TZS./m Flat rate (TZS) 2,500 4,000 7,500 10, SEWERAGE TARIFF Category Domestic Institutional Commercial Industrial Percentage of the water bill (%) Priority of Needs Based on its business plan under WSDP, Songea WSSA has set up priority areas to be: 1. Increasing water production and expansion of distribution system 2. Expand present coverage of sewerage disposal services 3. Improving revenue collection through universal metering 4. To improve water quality by expanding existing treatment plant 5. Water sources conservation through fencing of all water sources and intakes 6. To build capacity of workforce and improve customer satisfaction through recruitments of new competent staffs 7. To attain lower costs of water production and sanitation services 8. Enhance collaboration with other stakeholders by making them fully aware of Songea WSSA s activities. Consumer Service Average monthly consumption is about 12m 3 per connection, with per capita consumption of 93lts/day. Water is available at an average of 17 hours per day. Water quality compliance with WHO set standards is good at 100% compliance. There were 0.7 pipe breaks per km per year recorded and 5.76 sewer blockages per km per year during the year Performance Highlights Songea WSSA provides direct water supply to 61.2% of the population living in the area with water network. NRW has been reduced and currently stands at 26.9%. A bigger portion of customers are metered with current metering ratio at 88.7%. Operating ratio stands at 2.30 and Accounts receivable is equivalent to 1.7months. Average tariff stands at TZS. 607 per m 3. The number of staff per 1000 total connections ratio stands at

95 SONGEA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (SONGEA WSSA) Total Population in the Service Area: 203,309 Production/Distribution Average daily production 7,685m 3 Production capacity/day 11,500m 3 Treatment type Chlorination Storage capacity 4,025m 3 Length of distribution network 304km Service Connections Total water connections 10,666 Domestic water connections 9,912 Total sewer connections 1,054 Domestic sewer connections 922 Metering ratio 88.7% ANNUAL WATER USE 2,805,094 m 3 Service Indicators Water service coverage 76.5% Average service hours 17.1 Per capita consumption 93lts/c/d Average tariff TZS 607/m 3 Efficiency Indicators Non-revenue water 26.9% Unit production costs TZS 407/m 3 Operating ratio 2.30 Account receivable 1.7 months Staff/1000 connections 4.9 Income and Expenditure Annual operating income from water and sewerage services TZS 1,351,644,555 Government /Donor Grants TZS - Amortized Grants TZS - Other income TZS 133,441,829 TOTAL INCOME TZS 1,485,086,384 Water Production Expenses TZS 210,583,031 Water distribution expenses TZS 149,838,440 Maintenance and Repair TZS 44,872,825 Personnel Expenses TZS 576,730,562 Administration Expenses TZS 339,662,844 Other O&M Expenses TZS 510,326,030 Total O&M expenses TZS 1,832,013,732 Depreciation & Amortization TZS 1,590,485,810 ANNUAL EXPENDITURE TZS 3,422,499,542 ANNUAL WATER AND SEWERAGE BILLING TZS 1,425,648,595 ANNUAL O&M COSTS TZS 1,832,013,732 79

96 TABORA URBAN WATER SUPPLY AND SANITATION AUTHORITY (TABORA WSSA) Water Utility General Data About Water Utility Tariff Structure Tabora WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Tabora Municipality. Its area of operation has a total population of 226,999 people as per 2012 census data, while the current proportion of population directly served with water is 71%. About 97% of the water supply in Tabora comes from Igombe dam. The remaining amount is supplied from Kazima dam and Kitete shallow well. The combined water produced from the three sources during the reporting period was 4,345,323m 3 which was just about half the town s water demand of 8,858,550m3/year. Completion of WSDP project which included rehabilitation of the existing water treatment plant and the distribution system and construction of a new treatment plant near Igombe dam so as to increase the production capacity, contributed to the 9% increase in water production when compared to the previous year s production. Total active water connections 7,354 Total waste water connections 301 Total staff 93 Annual O&M costs TZS 2,353,876,440 Annual water and sewarage collections TZS 1,637,214,600 Annual water and sewerage billing TZS 2,174,874,387 WATER TARIFF Category Domestic Institutions Commercial Industrial Kiosks TZS./m Flat rate (TZS.) 12,000 25,000 25,000 30,000 - SEWERAGE TARIFF Category Domestic Institutions Commercial Industrial TZS/m Flat rate 3,000-5,000 15,000-25,000 15,000-25,000 15,000-25,000 OTHER CHARGES New connection Reconnection (water) Service charge (Domestic) Service charge (Nondomestic) Meter Rent TZS. TZS. TZS. TZS. TZS. 30,000-80,000 10,000-80,000 3,000 5,000 1,500 5,000 Priority of Needs Consumer Service Performance Highlights 1. Extension of water distribution network to un-supplied areas; 2. Exploration of alternative water sources; 3. Improvement of sewerage services and infrastructure. Average daily consumption is about 1,089 litres per connection, with per capita consumption of 49.5lts/day. Water is available at an average of 18.2 hours per day. Water quality compliance with WHO set standards is fair with E-coli and turbidity having 100% and 92% compliance respectively. There were 0.6 pipe breaks per km per year recorded and 5.65 sewer blockages per km during the year. Service coverage has slightly improved from 68.1% to 71% of the population being directly served with water. Sewerage coverage has also slightly improved from 6% to 7.1%. NRW has worsened from 25% to 32.7%. Metering ratio has improved from 59% to 62.1%, with all the active connections installed with meters. Staff per 1000 connections has improved from 8.2 to 7.7. Accounts receivable is relatively big equivalent to 6.5 months of water bills revenues. Average tariff stands at 695 TZS/m 3. 80

97 TABORA URBAN WATER SUPPLY AND SANITATION AUTHORITY (TABORA WSSA) Total Population in the Service Area:226,999 Production/Distribution Average daily production 11,905m 3 Production capacity/day 17,400m 3 Treatment type Conventional Storage capacity 5,865m 3 Length of distribution network 260km Service Connections Total water connections 11,837 Domestic water connections 10,977 Total sewer connections 301 Domestic sewer connections 240 Metering ratio 62.1% Service Indicators Water service coverage 71% Average service hours 18.2 Per capita consumption 49.5l/c/d Average tariff 695TZS/m 3 Efficiency Indicators Non-revenue water 32.7% Unit production cost 221 TZS/m 3 Operating ratio 0.99 Account receivable 6.5 months Staff/1000 connections 7.7 ANNUAL WATER USE 4,345,323 m 3 Income and Expenditure Annual operating income from water and sewerage services Government /Donor Grants Amortized Grants Other income TOTAL INCOME Water Production Expenses Water distribution expenses Maintenance and Repair Personnel Expenses Administration Expenses Other O&M Expenses Total O&M Expenses Depreciation & Amortization ANNUAL EXPENDITURE TZS 2,174,874,387 TZS - TZS - TZS 574,838,790 TZS 2,749,713,177 TZS 959,079,975 TZS 64,086,427 TZS 92,257,623 TZS 779,654,151 TZS 416,779,382 TZS 42,018,882 TZS 2,353,876,440 TZS 366,388,927 TZS 2,720,265,367 ANNUAL WATER & SEWERAGE BILLING TZS 2,174,874,387 ANNUAL O&M COSTS TZS 2,353,876,440 81

98 TANGA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (TANGA WSSA) Water Utility Profile Tanga WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in the Tanga City. Tanga WSSA is classified as a Category A water utility and its area of responsibility has a total population of 273,332 people. The present service area of the utility has a population density of 1,051persons/km 2. The utility draws water from one source, the Mabayani dam, with storage volume of 7,700,000m 3 and installed production capacity of 42,000m 3 /day. The utility has a sewerage system with sewer line length of 34.84km with no treatment system. The average wastewater generation of 2164 m 3 /day is being discharged directly into the Indian Ocean. General Data About Water Utility Total water connections 27,358 Total waste water connections 2,593 Total staff 151 Annual O&M costs TZS 5,295,605,142 Annual water and sewerage collections TZS 5,643,065,000 Annual water and sewerage billings TZS 5,907,365,779 Tariff Structure Category Domestic Institutional Commercial Industrial Big Consumer Consumption band TZS/m 3 TZS/m 3 TZS/m 3 TZS/m 3 TZS/m na Na > na > > ,030 1,100 Notes: The Charges at water Kiosks are TZS 10 per 20litre bucket. SEWERAGE TARIFF 860 Category TZS per m 3 of 80% of consumed water Domestic Institutional Commercial Industrial Average Tariff TZS/m 3 TZS/m 3 TZS/m 3 TZS/m 3 TZS/m Priority of Needs Consumer Service 1. Construction of waste water treatment plant; 2. Expansion of Mowe water treatment plant 3. Replacement of old pipes and reduction of NRW to acceptable level 5. Increase number of sewerage connections. Average monthly consumption is about 18m 3 per domestic connection with per capita consumption of 67 litres. Water is available at an average of hours per day.water quality compliance to the required standard was 99.09%. There were 89 consumer complaints per 1000 connections. Performance Highlights Tanga UWSA provides water supply direct to 92% of the population in its service area (administrative boundary of Tanga city) while the community schemes within the licensed area serve 2.5% making overall service coverage 94.5%. The average Non-Revenue water is at 25.91%. All production points and service connections are metered. Operating ratio is high at 1.04 while working ratio is Accounts receivable equivalent is good at 1.8 months. Weighted average tariff stood at TZS 698 per m 3 which is fair and enough to cover operating expenses and part of investment. The number of staff per 1000 connections is good at Wastewater treatment plant is highly needed to avoid direct discharging of untreated sewage. 82

99 TANGA WATER SUPPLY AND SANITATION AUTHORITY (TANGA WSSA) Total Population in the Service Area: 305,713 Production/Distribution Average daily production 28,492 m 3 Production capacity/day 42,000 m 3 Treatment type Conventional Storage capacity 10,070m 3 Service area 260km 2 Distribution pipe network 551km Service Connections Total water connections 27,358 Domestic water connections 25,727 Total Sewer connections 2,593 Domestic sewer connections 2,335 Metered connection 100% ANNUAL WATER USE 7,705,199 Service Indicators Water service coverage 94.5% Service hours 23.5hrs Per capita consumption 67l/c/d Average tariff 698 TZS/m 3 Complaints/1000 connection 89 Efficiency Indicators Non-Revenue water 25.91% Revenue collection efficiency 97.8% Unit production cost 635.4TZS/m3 Operating ratio 1.04 Working ratio 0.83 Account receivable 1.8 Staff/1000 connections 5.04 ANNUAL WATER AND SEWERAGE BILLING TZS 5,907,365,779 Income and Expenditure Annual operating income from water and sewerage services TZS 5,907,365,779 Government /Donor Grants TZS - Amortized Grants TZS 392,827,427 Other income TZS 465,931,521 TOTAL INCOME TZS 6,766,124,727 Water Production Expenses TZS 912,920,204 Water distribution expenses TZS 284,391,326 Maintenance and Repair TZS 356,064,434 Personnel Expenses TZS 1,906,614,145 Administration Expenses TZS 1,516,969,628 Other O&M Expenses TZS 318,645,405 Total O&M expenses TZS 5,295,605,142 Depreciation & Amortization TZS 1,312,159,973 ANNUAL EXPENDITURE TZS 6,607,765,115 ANNUAL O&M COSTS TZS 5,295,605,142 83

100 BARIADI URBAN WATER SUPPLY AND SANITATION AUTHORITY (BARIADI WSSA) Water Utility General Data About Water Utility Tariff Structure Priority of Needs Consumer Service Performance Highlights Bariadi WSSA was established as per Water Works Acto No. 8 of 1997 under GN No. 258 published on 21 st June, 2002 as a partial autonomous Authority in Category C. Bariadi was upgraded to the level of Regional WSSA following establishment of the new Region of Simiyu whose headquarters are located in Bariadi town. The main objective of Bariadi WSSA is to provide water and sanitation services to the Bariadi town, whose population is estimated to be 53,935. Out of these, only 18,130 people are directly served by Bariadi WSSA, equivalent to 34%. Bariadi WSSA depends on six boreholes, with yield capacity ranging from 3 10 hours, for its water supply. Bariadi dam, which was formerly the main source of water supply, is no longer in use for lack of water after getting silted. The current installed capacity is not sufficient to cater for the town s water demand which is estimated to be 5,135 m 3 /day. In 2012/13, Bariadi WSSA produced a total 142,074m 3 of water. Currently, Bariadi WSSA does not render sewerage services; these are for the moment handled by the Municipal Council. Bariadi WSSA has a total of 18 staff, 4 of whom are permanent employees. Total water connections 421 Total active water connections 285 Total staff 18 Annual O&M costs TZS 123,393,118 Annual water collection TZS 31,432,629 Annual water billing TZS 40,159,240 Category of customer Domestic Institutions Commercial Kiosk Consumption charge (TZS/m3) Flat rate charge (TZS/Month) New Connection Charges (TZS/connection) Re-connection charges (TZS/connection) Service Charges (TZS/month) Meter Rental Charges (TZS/month) /- per 20lts bucket 6,000 13,500 17,000-32,000 33,000 33,000 10,500 16,000 21,000 2,000 2,000 2, Low water production capacity, which calls for the need of exploring alternative water sources 2. Low metering ratio, thus being one of the reasons for high NRW, 3. Low water supply coverage, thus the need to extend water distribution network to uncovered areas. Average monthly consumption of water is about 31m 3 per connection, with per capita consumption of 16lts/day. Water is available at an average of 16 hours per day. Supplied water is in compliance with TBS water quality standards in both E-coli and turbidity. One pipe breaks/leaks per km per year was recorded during 2012/2013. The proportion of population that is directly served by Bariadi WSSA is reported to be 33.6%. Non- Revenue Water is 25%. Metering ratio has increased to 12.4% from 11% reported in the previous year. The ratio of staff/1000 connections is high at Operating ratio is Average tariff is TZS 585 per m 3 which covers operating expenses, depreciation and part of investment expenditure. Account receivable is equivalent to 2 months. 84

101 BARIADI URBAN WATER SUPPLY AND SANITATION AUTHORITY (BARIADI WSSA) Total Population in the Service Area: 53,935 Production/Distribution Average daily production 389m 3 Production capacity/day 816m 3 Treatment type Chlorination Storage capacity 370m 3 Length of distribution network 24km Service Connections Total water connections 458 Domestic water connections 421 Metering ratio % 12.4 Domestic metered connections 37 ANNUAL WATER USE 142,074 M 3 Service Indicators Water service coverage 33.6% Average service hours 16 Per capita consumption 16 l/c/d Average tariff 585 TZS/m 3 Efficiency Indicators Non-revenue water 25% Unit production cost TZS 139/m3 Operating ratio 5.57 Account receivable 2months Staff/1000 connections 39.3 Income and expenditure ANNUAL WATER BILLING TZS 40,159,240 Annual operating income from water and sewerage services Government /Donor Grants Amortized Grants Other income TOTAL INCOME Water Production Expenses Water distribution expenses Maintenance and Repair Personnel Expenses Administration Expenses Other O&M Expenses Total O&M expenses Depreciation & Amortization ANNUAL EXPENDITURE TZS 40,159,240 TZS 81,917,000 TZS - TZS 4,359,700 TZS 126,435,940 TZS 19,745,000 TZS - TZS 17,781,118 TZS 44,675,000 TZS 40,537,000 TZS 655,000 TZS 123,393,118 TZS 124,777,341 TZS 248,170,459 ANNUAL O&M COSTS TZS 123,393,118 85

102 BUKOBA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (BUKOBA WSSA) Water Utility Profile Bukoba WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Bukoba Municipality. Its area of responsibility has a total population of 128,796 people, of which 98,260 people are living within the area with water supply network. The water supply network has a total length of 83km of pipelines. The utility draws water from 4 springs, one river intake and one intake at Lake Victoria. The combined production capacity is 13,280 m 3 /day. Water production is 73.4% of water demand. The utility has no sewerage system. BUWASA has 62 permanent employees, 7 long-term and short-term contractual staff of different qualifications and professions. General Data About Water Utility Total water connections 7,533 Total waste water connections NIL Total Staff 67 Annual O&M costs TZS 1,253,961,342 Annual collections TZS 979,111,676 Annual water and sewerage sales TZS 1,145,374,922 Tariff Structure Category Domestic Institutions Commercial Industrial Consumpti on Charge TZS/m 3 TZS/m 3 TZS/m 3 TZS/m Notes: The Charges at water kiosks are TZS 10/20 litre bucket OTHER CHARGES New connection Reconnection (water) Service charge (Domestic) Service charge (Non-domestic) Meter Rent TZS. TZS. TZS. TZS. TZS. 15, ,000 10,000-60,000 1,000 1,150-2,250 1,000-10,750 Priority of Needs 1. Reduction of Non-Revenue Water from 53.4% to acceptable level of 20% 2. Metering all its customers 3. Improvement of quality of water produced 4. Rehabilitation of water mains Consumer Service Performance Highlights Average monthly consumption is about 12.7m 3 per domestic connection. Water is available at an average of 21.3 hours a day.water quality is poor with only 59% of water samples taken during the year passing the E-coli tests. There were 1,529 consumer complaints recorded and 2.6 water pipe breaks per kilometre per year. Bukoba WSSA provides water supply direct to 56.9% of the population in its service area. NRW is still high at 53.4%. All production points are metered. Operating ratio has deteriorated to 1.19 as compared to previous year. Accounts receivable equivalent is 3.4. Average tariff at TZS 759 per m 3 is fair and enough to cover operating expenses and part of investment. Staff/1000 connections ratio is fairly high for a category B utility at 8.9. Bukoba needs more effort to reduce account receivable to at least less than one month. Other areas for improvement are reduction of NRW, metering of all its customers, improvement of the quality of water produced and rehabilitation of water mains. 86

103 BUKOBA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (BUKOBA WSSA) Total population in the service area: 128,796 Production/Distribution Average daily production 8,029m 3 Production capacity/day 13,280m 3 Treatment type Chlorination Storage capacity 1,905m 3 Service area 80km 2 Distribution pipe network 83km Service Connections Total water connections 7,533 Domestic water connections 6,887 Total sewer connections NIL Domestic sewer connections NIL Service Indicators Water Service Coverage 56.9% Service hours 21.3hrs Per capita consumption 47l/c/d Average tariff TZS 759/m 3 ANNUAL WATER USE 2,930,736 m 3 Efficiency Indicators Non-Revenue Water 53.4% Unit production cost TZS /m 3 Operating ratio 1.19 Account receivables 3.4 Staff/1000 connections 8.9 Income and Expenditure Annual operating income from water and sewerage services TZS 1,145,374,922 Government /Donor Grants TZS 0 Amortized Grants TZS 105,359,770 Other income TZS 106,250,640 TOTAL INCOME TZS 1,356,985,332 Water Production Expenses TZS 272,851,401 Water distribution expenses TZS 38,921,146 Maintenance and Repair TZS 97,533,389 Personnel Expenses TZS 522,966,780 Administration Expenses TZS 296,170,270 Other O&M Expenses TZS 25,518,356 Total O&M expenses TZS 1,253,961,342 Depreciation & Amortization TZS 232,453,572 ANNUAL EXPENDITURE TZS 1,486,414,914 ANNUAL WATER BILLING TZS 1,145,374,922 ANNUAL O&M COSTSTZS 1,253,961,342 87

104 KIGOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (KIGOMA WSSA) Water Utility General Data About Water Utility Tariff Structure Profile Kigoma WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in the Kigoma Municipality. Its area of responsibility has a total population of 224,162 people, of which 152,430 people are living within the area with water supply network. The water supply network has a total length of 215.7km of pipelines. The utility draws water from the Lake Tanganyika intake. The intake has a production capacity of 15,000m 3 /day. Water production is 59.4% of water demand. The Utility has no sewerage system. KUWASA has 68 employees, 11 permanent and 57 long-term and short-term contractual staff of different qualifications and professions. Total water connections 8,664 Total waste water connections NIL Total staff 68 Annual O&M costs TZS 2,152,615,414 Annual collections TZS 1,175,083,622 Annual billings& sewerage sales TZS 1,738,571,351 Category Domestic Institutional Commercial Industrial Consumpti on Charge TZS/m 3 TZS/m 3 TZS/m 3 TZS/m ,065 1,110 1,155 Notes: The Charges at water kiosks are TZS 500/m 3. Flat rates charges Category Domestic Institutional Commercial Industrial Consumpti on Charge TZS/month TZS/month TZS/month TZS/month 18,000 N/A N/A N/A New connection (water) Reconnection Service Meter Rent charge TZS. TZS. TZS. TZS. 20% of Connection Charge 10,000-20,000 1,500-3, Priority of Needs Consumer Service Performance Highlights 1. Reduction of NRW 2. Improvement on production and service hours 3. Metering all its customers 4. Construction of water treatment plant and sewerage system 5. Increased water services coverage 6. Improved revenue collection Average monthly consumption is about 23.8m 3 per domestic connection. Water is available at an average of only 9.1 hours a day.water quality is good, with 100% of water samples taken during the year passing the E-coli tests. There were 679 consumer complaints recorded and 2.8 water pipe breaks per kilometre per year. KUWASA provides water supply direct to 42.8% of the population in its service area. NRW is still high at 33.5%. Operating ratio is at Accounts receivable equivalent is 3.1 months. Average tariff at TZS 772 per m 3 to cover operating expenses and part of investment. Staff/1000 connections ratio is 8. 88

105 KIGOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (KIGOMA WSSA) Total Population: 224,162 Production/Distribution Average daily production 12,034m 3 Production capacity/day 15,000m 3 Treatment type Chlorination Storage capacity 4,220m 3 Service area 30km 2 Distribution pipe network 215.7km Service Connections Total water connections 8,664 Domestic water connections 8,349 Total Sewer connections NIL Service Indicators Water service coverage 42.8% Service hours 9.1hrs Per capita consumption 44.1l/c/d Average tariff TZS 772/m 3 ANNUAL WATER USE 4,395,488m 3 Efficiency Indicators Non-Revenue Water 33.5% Unit production cost TZS /m 3 Operating ratio 1.23 Account receivable s 3.1 Staff/1000 connections 8 Income and Expenditure Annual operating income from water and sewerage services TZS 1,738,571,351 Government /Donor Grants TZS 10,000,000 Amortized Grants TZS 7,529,580 Other income TZS 102,257,653 TOTAL INCOME TZS 1,858,358,584 Water Production Expenses TZS 545,024,778 Water distribution expenses TZS 28,932,342 Maintenance and Repair TZS 126,264,775 Personnel Expenses TZS 816,097,037 Administration Expenses TZS 294,880,397 Other O&M Expenses TZS 341,416,084 Total O&M expenses TZS 2,152,615,414 Depreciation & Amortization TZS 106,293,757 ANNUAL EXPENDITURE TZS 2,258,909,171 ANNUAL WATER BILLING TZS 1,738,571, ANNUAL O&M COSTS TZS 2,152,615,414 89

106 SINGIDA URBAN WATER SUPPLY AND SANITATION AUTHORITY (SINGIDA WSSA) Water Utility General Data About Water Utility Tariff Structure Singida WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Singida Municipality. Currently, Singida WSSA s service area has a total population of 87,248 (as reported in the 2012 Census Report). Water supply in Singida town is purely from underground sources. There are 23 boreholes in 9 well fields with water production capacity of 9,088m 3 a day, sharply increasing from 4,300 m 3 /day reported in the last year. This rapid increase in production capacity is caused by starting utilization of Mwankoko borehole, which is one of the completed boreholes implemented under the ongoing water project funded by BADEA/OPEC and WSDP. The project has been delayed, it is now expected to be completed in August, During the year 2012/2013, Singida WSSA produced a total of 1,430,781m 3 of water (an average of 3,920 m 3 /day), increasing by 4% compared to the previous year s production. The current water demand in Singida WSSA s service area is estimated at 7,200 m 3 /day decreasing from 7,550 m 3 /day reported last year. This year s estimation is based on the actual population figures extracted from the census report. There is no sewerage services in Singida WSSA s service area, but plans are underway to implement the sewerage project, whereby currently Singida WSSA is in the process of procuring a design Consultant for construction of the sewerage network and the sewerage treatment plant. Total water connections 5,399 Total active water connections 5003 Total staff 69 Annual O&M costs: TZS 941,304,412 Annual water collection: TZS 727,242,561 Annual water billing: TZS 792,488,632 WATER TARIFF AND CHARGES Category Domestic Institutions Commercial Religious Water Kiosks Tankers Metered (TZS./m 3 ) ,500 1,000 Flat rate (TZS.) 8,000 15,000 15,000 12, Connection charge 50,000 80,000 80, Meter Rent 1,000 2,500 2, Priority of Needs Consumer Service Performance Highlights 1. Increase water production. 2. Meter all active customers. 3. Extension of the distribution network to uncovered area. 4. Construction of sewerage collection network and treatment facilities. Average daily consumption of water is about 549 litres per connection, with per capita consumption of 38.7lts/day. Water is available at an average of 5.7 hours per day. Supplied water is in compliance with WHO water quality standards in both E-coli and turbidity. 3.5 pipe breaks/leaks per km per year was recorded during 2012/2013. The proportion of population that is directly served by Singida WSSA has increased from 76.5% reported in the previous year to 81.2% this year. Non-Revenue Water has remained at 30% as last year. Metering ratio has increase to 81.6% from 73% reported in the previous year. The ratio of staff/1000 connections has improved from 13.2 reported last year to Operating ratio is 1.4. Average tariff is TZS 796 per m 3 which covers operating expenses, depreciation and part of investment expenditure. Account receivable is equivalent to 3.3 months.. 90

107 SINGIDA URBAN WATER SUPPLY AND SANITATION AUTHORITY (SINGIDA WSSA) Total Population in the Service Area: 87,248 Production/Distribution Average daily production 3,920m 3 Production capacity/day 9,088m 3 Treatment type Chlorination Storage capacity 7,022m 3 Length of distribution network 95.5km Service Connections Total water connections 5,399 Domestic water connections 4,789 Metering ratio % 81.6 Domestic metered connections 4,013 ANNUAL WATER USE 1,430,781 M 3 Service Indicators Water service coverage 81.2% Average service hours 5.7 Per capita consumption 38.7 l/c/d Average tariff TZS/m Efficiency Indicators Non-revenue water 30% Unit production cost TZS /m 3 Operating ratio 1.4 Account receivable 3.3 months Staff/1000 connections 12.8 Income and expenditure ANNUAL WATER BILLING TZS 792,488,632 Annual operating income from water and sewerage services Government /Donor Grants Amortized Grants Other income TOTAL INCOME Water Production Expenses Water distribution expenses Maintenance and Repair Personnel Expenses Administration Expenses Other O&M Expenses Total O&M expenses Depreciation & Amortization ANNUAL EXPENDITURE TZS 792,488,632 TZS - TZS 81,655,572 TZS 12,710,000 TZS 886,854,204 TZS 206,738,033 TZS 6,553,200 TZS 30,246,470 TZS 415,029,577 TZS 259,066,559 TZS 23,670,573 TZS 941,304,412 TZS 184,794,019 TZS 1,126,098,431 ANNUAL O&M COSTS TZS 941,304,

108 SUMBAWANGA WATER SUPPLY AND SANITATION AUTHORITY (SUMBAWANGA WSSA) Water Utility Sumbawanga WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in the Sumbawanga Municipality. Sumbawanga WSSA is classified as a Class B water utility and its area of operation has a total population of 209,793. Proportion of Population Living in the area with water network is 36.7%. The utility draws water from surface (River 99.2%) and groundwater sources (boreholes 0.8%) and has a semi conventional treatment plant. The utility has no sewerage system. General Data About Water Utility Total water connections 5,496 Total active water connections 5,302 Total staff 42 Annual O&M costs TZS 709,527,740 Annual Water Collections TZS 593,095,727 Annual Water Billing TZS 515,971,532 Tariff Structure WATER TARIFF Category Domestic Institutional Commercial Industrial Kiosks TZS./m Flat rate (TZS.) 5, TZS 10/20ltrs OTHER CHARGES New connection Reconnection Service charge Service charge Fixed Charge for (water) (Domestic) (Nondomestic) Sewer New connection TZS. TZS. TZS. TZS. TZS. 20,000 10,000 20,000 1,000 1,500 3,000 - Priority of Needs 1. Rehabilitation and extension of the water supply and sewerage infrastructures. 2. Reduction of NRW 3.Promotion of connections to customers. 4. Planning for and construction of sewerage infrastructure for the Sumbawanga Municipality. 5. Compliance with water quality standards. Consumer Service Average monthly domestic water consumption is about 7.3 m3 per connection, with per capita consumption of 57lts/day. Water is available at an average 10.6 hours per day. Water quality compliance with WHO set standards is fair with 83% compliance. There were 1.1 pipe breaks per km per year recorded. Performance Highlights Sumbawanga WSSA provides direct water supply to 26% of the population living in the area with water network. NRW is still high at 39.7%. A fair portion of customers are metered and, currently, metering ratio is 75.2%. Operating ratio is 1.42 and Accounts receivable equivalent is 3.4 months. Average tariff stands at TZS 508 per m 3 which is inadequate for covering operating expenses and network extensions. Ratio of Staff per 1000 water connections ratio is

109 SUMBAWANGA WATER SUPPLY AND SANITATION AUTHORITY (SUMBAWANGA WSSA) Total Population in the Service Area: 209,793. Production/Distribution Average daily production 4,461m 3 Production capacity/day 7,200m 3 Treatment type Partial Conventional Storage capacity 1,350m 3 Length of distribution network 133km Service Connections Total water connections 5,496 Domestic water connections 5,206 Total sewer connections - Domestic sewer connections - Metering ratio 72.6% ANNUAL WATER USE 1,628,595 m 3 Service Indicators Water service coverage 61.6% Average service hours 10 Per capita consumption 57l/c/d Average tariff TZS 508/m 3 Efficiency Indicators Non-Revenue Water 39.7% Unit production cost TZS 425/m 3 Collection efficiency 92% Operating ratio 1.4 Account receivable 3.4months Staff/1000 connections 8.6 Income and Expenditure Annual operating income from water and sewerage services TZS 576,656,532 Government /Donor Grants TZS - Amortized Grants TZS - Other income TZS 27,608,637 TOTAL INCOME TZS 604,265,169 Water Production Expenses TZS 22,112,000 Water distribution expenses TZS 2,736,471 Maintenance and Repair TZS 43,366,565 Personnel Expenses TZS 422,914,103 Administration Expenses TZS 193,587,304 Other O&M Expenses TZS 24,811,298 Total O&M expenses TZS 709,527,741 Depreciation & Amortization TZS 151,212,597 ANNUAL EXPENDITURE TZS 860,740,338 ANNUAL WATER SERVICES BILLING TZS 576,656,532 ANNUAL O&M COSTS TZS 709,527,741 93

110 BABATI URBAN WATER SUPPLY AND SANITATION AUTHORITY (BABATI WSSA) Profile Water Utility Babati WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services in Babati town. Babati WSSA is classified as class C water utility and its area of responsibility has a total population of 91,436 people. The operational area of the utility has a population density of 3,104 persons/km 2. The utility draws water from one spring source (Mrara Spring) contributing about 30% of the daily water production and eleven boreholes contributing about 70%. The combined source production capacity is 9000m 3 /day. The Utility has no sewerage system. General Data About Water Utility Total Water Connections 3728 Total Staff 48 Annual O&M Costs TZS 617,076,809 Annual Water Sales Collections TZS 603,755,163 Annual Water Sales Billings TZS 615,238,780 Tariff Structure Category Domestic Institutional Commercial Industrial Kiosks Consumption TZS/m 3 TZS/m 3 TZS/m 3 TZS/m 3 TZS/m 3 > < Service Charge: TZS 2500/month Priority of Needs Consumer Service 1. Extensions of water supply network 2. Reduction of Non-Revenue Water; 3. Initiation of wastewater collection system 4. Environmental protection of water sources catchment areas 5. Increase the existing storage capacity. Average monthly consumption is about 12m 3 per domestic connection with a per capita consumption improved from 25lts/day during last year to 32 lts/day this year. Water is available at an average of 14 hours a day. The quality of water meets the required standard in which the overall average compliance during the year was 99.77%. There were 2,330 consumer complaints recorded out of which 2125 of the complaints were resolved. Performance Highlights Babati WSSA provides water supply direct to 63.37% of the population in its service area while the community schemes within the licenced areas serves 20.83% making overall water service coverage of 84.2%. The service coverage considers the entire Babati Township boundary comprising of 8 wards. The NRW is still high but improved to 37.05% compared to 39.7 recorded last year. All productions points are metered as well as all customer connections. Operating ratio is 1.4 which is still not satisfactory. Accounts receivable equivalent is good at 1.4 month. Average tariff at TZS 724 per m 3 is fair although not sufficient to cover all operating expenses and part of investment. Staff/1000 connections ratio is still high at

111 BABATI WATER SUPPLY AND SANITATION AUTHORITY (BABATI WSSA) Total Population in the Service Area: 91,436 Production/Distribution Average a daily production 3,208m 3 Production capacity/day 9,000m 3 Treatment type Convention partial Storage capacity 1,125m 3 Service area 30km 2 Distribution pipe network km Service Connections Total water connections 3,728 Domestic water connections 3,349 Total active connections 3,519 Metered connections 100% Service Indicators Water service coverage 84.2% Service hours 14hrs Per capita consumption 32l/c/d Average tariff 724TZS/m3 Complaints/1000 connections 625 Efficiency Indicators Non-Revenue Water 37.05% Revenue collection efficiency 84% Unit production cost 820TZS/m3 Operating ratio 1.4 Working ratio 0.90 Account receivable 1.4 Staff/1000 connections Income and Expenditure Annual operating income from water and sewerage services TZS 615,238,780 Government /Donor Grants TZS - Amortized Grants TZS 226,632,551 Other income TZS 71,132,690 TOTAL INCOME TZS 913,004,021 Water Production Expenses TZS 121,290,983 Water distribution expenses TZS - Maintenance and Repair TZS 30,853,386 Personnel Expenses TZS 268,856,279 Administration Expenses TZS 187,708,031 Other O&M Expenses TZS 8,368,130 Total O&M expenses TZS 617,076,809 Depreciation & Amortization TZS 343,233,791 ANNUAL EXPENDITURE TZS 960,310,600 ANNUAL WATER USE 737,137 m 3 ANNUAL WATER BILLING TZS 615,238,780 ANNUAL O&M COSTS TZS 617,076,809 95

112 LINDI URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (LINDI WSSA) Water Utility Profile Lindi WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sewerage services in the Lindi Municipality. Its area of operation has a total population of people. Population living in area with network is 55,427 people.the current percentage population coverage is 70.30%. The utility draws water from surface and groundwater sources. The total new municipal area is approximately 830km 2. The utility has neither a sewerage system nor a sewage treatment plant. General Data About Water Utility Tariff Structure Total water connections 1,706 Total waste water connections - Total staff 42 Annual O&M costs TZS 682,301,766 Annual water and sewerage collections TZS 261,324,373 Annual water and sewerage billing TZS 219,254,460 WATER TARIFF Category Domestic Institutional Commercial Industrial Kiosks Bowser TZS./m ,100 1,400 1,600 1,000 2,300 Flat rate (TZS.) 9,000 19,000 32,000 42, OTHER CHARGES New connection Service charge Service charge Reconnection (water) (Domestic) (Non-Domestic) TZS TZS TZS TZS 30,000 50,000 10,000 40,000 2,500 2,500-3,400 Priority of Needs Consumer Service Based on its business plan , LUWASA has set up priority areas to be: 1. Access to adequate water supply increased by establishing new water sources, extension of pipe network, increase in number of connections and reducing NRW 2. Improve on quality of water supply by Conservation of area around the sources and improve on treatment facilities 3. Improve sanitation services by Acquiring land for sewage treatment plants and sensitization of community on the use of proper sanitation facilities 4. Institution Capacity Strengthened by improving working environment, Improve equipment and transport facilities, recruitment of competent staff and contract out non-core functions of the authority 5. Reduce HIV and AIDS infections by having in place a programme to fight spread of HIV/AIDS in work places, Promote voluntary counseling and testing for the Lindi WSSA staff and provide care and support to Lindi WSSA staff living with HIV/AIDS. Average monthly consumption is about 5.8m 3 per connection, with per capita consumption of 3.5lts/day. Water is available at an average of 6 hours per day. Water quality compliance with WHO set standards with E-coli is 99 and turbidity is having 100% compliance There were 6 pipe breaks per km per year. Performance Highlights Lindi WSSA provides water supply direct to 48% of the population in its service area. NRW is still high at 47.2%. The metering ratio is 67%. Operating ratio is also high at Accounts receivable equivalent is 3.4months. Average tariff stands at TZS. 900 per m 3 which does not cover operating expenses. The ratio of staff per 1000 total connections ratio is

113 LINDI URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (LINDI WSSA) Total Population in the Service Area: 78,841 Production/Distribution Average daily production 1,039 m3 Production capacity/day 4,050 0m3 Treatment type Chlorination Storage capacity 3,070m 3 Length of distribution network 129 km Service Connections Total water connections 1,706 Domestic water connections 1,478 Total sewer connections - Domestic sewer connections - Metering ratio 67% ANNUAL WATER USE 379,238m 3 Service Indicators Water service coverage 70% Average service hours 6 Per capita consumption 3.5lts/c/d Average tariff TZS/m Efficiency Indicators Non-revenue water 47.4%. Unit production costs TZS 2,065.6 /m 3 Operating ratio 1.89 Account receivable 3.4 months Staff/1000 connections 34 Income and Expenditure Annual operating income from water and sewerage services TZS 219,254,460 Government /Donor Grants TZS - Amortized Grants TZS 62,874,970 Other income TZS 194,895,578 TOTAL INCOME TZS 477,025,008 Water Production Expenses TZS 145,930,972 Water distribution expenses TZS 121,198,050 Maintenance and Repair TZS 16,763,257 Personnel Expenses TZS 155,151,184 Administration Expenses TZS 154,282,380 Other O&M Expenses TZS 88,975,923 Total O&M expenses TZS 682,301,766 Depreciation & Amortization TZS 101,038,251 ANNUAL EXPENDITURE TZS 783,340,017 ANNUAL WATER BILLING TZS 219,254,460 ANNUAL O&M COSTS TZS 682,301,766 97

114 GEITA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (GEITA WSSA) Water Utility General Data About Water Utility Tariff Structure Profile Geita WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply and sanitation services within Geita Urban area which is the headquarter of newly established Geita Region. Geita WSSA is classified as Category C water authority. Its area of responsibility has a total population of 192,707 people in which 12,696 people are currently served. The utility draws water from four water sources, namely Kagera Spring, Kambarage, Bomani and Tambukareli boreholes. The sources have altogether, total installed production capacity of 590m 3 /day.the present production capacity is insufficient compared with the estimated water demand of 14,146m 3 /day. The total length of pipeline system is 16km. Water is supplied through rationing at an average of 4hrs. The system has 6 storage tanks with a combined capacity of 370m 3. The township has no sewerage system; presently, onsite sanitary facilities are in use under Geita District Town Council. GEUWASA has 4 permanent employees, 4 contracted staff and 4 daily paid labourers of different qualifications and professions. Total water connections 391 Total waste water connections N/A Total staff 12 Annual O&M costs TZS 79,375,338 Annual collections TZS 50,533,526 Annual billings& sewerage sales TZS 41,978,245 Category Domestic Institutional Commercial Industrial Consumpti on Charge TZS/m 3 TZS/m 3 TZS/m 3 TZS/m N/A Flat Rate Customers Category Domestic Institutional Commercial Industrial Consumpti on Charge TZS/month TZS/month TZS/month TZS/month 10,500 11,500 11,500 N/A Notes: The Charges at water Kiosks are TZS 1,000 /m 3. New connection (water) TZS. TZS. TZS. TZS. Reconnection Service charge (Domestic) Service charge (Nondomestic) 15, ,000 5,500 NIL NIL Priority of Needs Consumer Service Performance Highlights 1. Reduction of non revenue water. 2. Improve water and sewerage coverage%. 3. Recovery of arrears 4. Improve water production Average monthly consumption is about 18.5m 3 per domestic connection. Water is available at an average of 4 hours a day.water quality is poor, with only chlorination done to the abstracted water. There were 23 water pipe breaks per year recorded. GEUWASA provides water supply direct to a small fraction of 2% of the population in its service area. NRW is reasonably good at 24%. Operating ratio is at Accounts receivable equivalent is 1.3months. Average tariff is TZS 300 per m 3 which is fair to cover operating expenses and part of investment. Staff/1000 connections ratio is poor at

115 GEITA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (GEITA WSSA) Total Population in the Service Area: 192,707 Production/Distribution Average daily production 512m 3 Production capacity/day 590m 3 Treatment type Chlorination Storage capacity 370m 3 Service area 1,080km 2 Length of distribution network 16.2km Service Connections Total water connections 391 Domestic water connections 343 Total sewer connections N/A Domestic sewer connections N/A Metered connections 13 Service Indicators Water service coverage 2% Average service hours 4 Per capita consumption 61.7l/c/d Average tariff 300 TZS/m 3 ANNUAL WATER USE 117,875 m 3 Efficiency Indicators Non-Revenue Water 24% Unit production cost TZS/m 3 Operating ratio 1.12 Account receivable 1.3months Staff/1000 connections 30.7 Income and Expenditure Annual operating income from water and sewerage services TZS 41,978,245 Government /Donor Grants TZS - Amortized Grants TZS 9,944,500 Other income TZS 37,894,353 TOTAL INCOME TZS 89,817,098 Water Production Expenses TZS 13,004,778 Water distribution expenses TZS 9,737,600 Maintenance and Repair TZS 11,214,600 Personnel Expenses TZS 25,695,900 Administration Expenses TZS 18,355,500 Other O&M Expenses TZS 1,366,960 Total O&M expenses TZS 79,375,338 Depreciation & Amortization TZS 9,944,500 ANNUAL EXPENDITURE TZS 89,319,838 ANNUAL WATER BILLING TZS 41,978,245 ANNUAL O&M COSTS TZS 79,375,

116 MPANDA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY ( MPANDA WSSA ) Water Utility General Data About Water Utility Mpanda WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply services in the Mpanda township. Its area of operation has a total population of 102,283 people while the currently served area of the utility has a population of 53,498. Proportion of Population Living in the area with water network is 52.3%. The Utility draws water from surface (River 25% and dam 66%) and groundwater sources (9%). The utility has no sewerage system. Total water connections 2,903 Total waste water connections - Total staff 37 Annual O&M costs TZS 151,521,000 Annual water collections TZS 163,475,300 Annual water billing TZS 176,617,000 Tariff Structure Category of customer Domestic Institutions Commercial Industrial Kiosks Metered (TZS/M 3 ) Flat rate (TZS/Month) 5,500 11,500 9,500 50, per 20 litre jerry OTHER CHARGES New Reconnection connection (water) Service charge (Domestic) Service charge (Nondomestic) TZS. TZS. TZS. TZS. TZS. TZS. Priority of Needs Consumer Service Mpanda WSSA has plans that can be implemented to improve water service in Mpanda township categorized according to their magnitude and capital investment. The Immediate plan ( ) for upgrading water system includes: 1. Abstraction of water from Ikorongo spring will add 5000m 3 /day to the reticulation system 2. Installation of surface Pump at Milala with Q = 150m 3 /h 3. Construction of reservoir tank at Kazima with a capacity of 1000m 3 4. Rehabilitation and extension distribution network 39km and 5. Installation of 4,000 water meters. Average monthly consumption is about 19.1m 3 per connection, with per capita consumption of 122lts/day. Water is available at an average of 3hours per day. There were 0.8 pipe breaks per km per year recorded during the year. Performance Highlights Mpanda WSSA provides direct water supply to 41.8% of the population living in the area with water network. NRW is still, very high and currently stands at 49%. A large portion of customers are not metered and, currently, metering ratio is 13.5%. Operating ratio is 1.08 and Accounts receivable equivalent is 3.8 months. Average tariff stands at TZS 445 per m 3 which is inadequate for covering operating expenses and network extensions. Ratio of Staff per 1000 water connections ratio is

117 MPANDA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (MPANDA WSSA) Total Population in the Service Area: 102,283 Production/Distribution Average daily production 3,300m 3 Production capacity/day 4,740m 3 Treatment type none Storage capacity 530.m 3 Length of distribution network 74km Service Connections Total water connections 2,903 Domestic water connections 2,700. Total sewer connections - Domestic sewer connections- Metering ratio 13.5% ANNUAL WATER USE 1,204,500 m 3 Service Indicators Water service coverage 52.3% Average service hours 3 Per capita consumption 122lts/c/d Average tariff TZS 445./m 3 Efficiency Indicators Non-revenue water 30% Unit production costs TZS 343/m 3 Revenue collection efficiency 77% Operating ratio 1.08 Account receivable 3.8.months Staff/1000 connections 12.7 Income and Expenditure Annual operating income from water and sewerage services TZS 176,617,000 Government /Donor Grants TZS - Other income TZS 3,105,000 TOTAL INCOME TZS 179,722,000 ANNUAL WATER SERVICES BILLING TZS 176,617,000 Water Production Expenses TZS 8,257,000 Water distribution expenses TZS 56,542,000 Maintenance and Repair TZS 4,192,000 Personnel Expenses TZS 61,947,000 Administration Expenses TZS 19,853,000 Other O&M Expenses TZS 730,000 Total O&M expenses TZS 151,521,000 Depreciation & Amortization TZS 42,213,000 ANNUAL EXPENDITURE TZS 193,734,000 ANNUAL O&M COSTS TZS 151,521,

118 NJOMBE URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (NJOMBE WSSA) Water Utility Njombe WSSA is a fully autonomous public water utility responsible for the overall operation and management of water supply services in the Njombe township. Its area of operation has a total population of 130,223 people while the currently served area of the utility has a population of 69,018. Proportion of Population Living in the area with water network is 53%. The Utility draws water from surface (Springs 100%). The Utility has no sewerage system. General Data About Water Utility Tariff Structure Total water connections 4,330 Total waste water connections - Total staff 29 Annual O&M costs TZS 527,548,976 Annual water and sewerage collections TZS 311,766,120 Annual water and sewerage billing TZS 343,709,056 Category of customer Domestic Institutions Commercial Kiosks Metered (TZS/m 3 ) Flat rate (TZS/month) 4,500 5,500 10,000 9, per 20 litre jerry New connection (water) Reconnection Service charge (Domestic) Service charge (Non-domestic) TZS. TZS. TZS. TZS. Priority of Needs Based on its immediate plans, Njombe WSSA is striving to solve the following priority areas: 1. Inadequate water supply to meet the water demand 2. Lack of funds for financing construction of new Water Supply projects, rehabilitation and extension of distribution networks from existing scheme 3. Lack of water supply in the newly developed areas in the town with high demand 4. High Non Revenue Water 5. Insufficient storage facilities 6. Lack of water treatment facilities 7. Lack of competent and qualified staff Consumer Service Performance Highlights Average monthly consumption is about 8.7m 3 per connection, with per capita consumption of 57.3lts/day. Water is available at an average of 4 hours per day. Water quality compliance with WHO set standards are good with E-coli having 100% and turbidity is having 95% compliance. There were 3.6 pipe breaks per km per year recorded. Njombe WSSA provides direct water supply to 41.8% of the population in its service area. NRW is still high and stands at 38.9%. A bigger portion of customers are metered and currently metering ratio is 81%. Operating ratio is 1.27 and accounts receivable equivalent is 1.1 months. Average tariff stands at TZS 395 per m 3. The ratio of staff per 1000 total connections ratio

119 NJOMBE URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (NJOMBE WSSA) Total Population in the Service Area: 56,038 Production/Distribution Average daily production 2,989.m 3 Production capacity/day 3,255m 3 Treatment type Chlorination Storage capacity 685m 3 Length of distribution network 56km Service Connections Total water connections 4,330 Domestic water connections 4,128. Total sewer connections - Domestic sewer connections - Metering ratio 81% ANNUAL WATER USE 1,091,279 m 3 Service Indicators Water service coverage 53% Average service hours 4 Per capita consumption 57.3lts/c/d Average tariff TZS 395/m 3 Efficiency Indicators Non-revenue water 38.9% Unit production costs TZS 343/m 3 Revenue collection efficiency 104% Operating ratio 1 Account receivable 1 month Staff/1000 connections 6.7 Income and Expenditure Annual operating income from water and sewerage services TZS 343,709,056 Government /Donor Grants TZS - Amortized Grants TZS - Other income TZS 34,143,350 TOTAL INCOME TZS 377,852,406 Water Production Expenses TZS 18,006,928 Water distribution expenses TZS 74,540,914 Maintenance and Repair TZS 24,536,650 Personnel Expenses TZS 116,916,230 Administration Expenses TZS 129,522,440 Other O&M Expenses TZS 10,911,600 Total O&M expenses TZS 374,434,762 Depreciation & Amortization TZS 104,783,534 ANNUAL EXPENDITURE TZS 479,218,296 ANNUAL WATER SERVICES BILLING TZS 343,709,056 ANNUAL O&M COSTS TZS 374,434,

120 DAR ES SALAAM WATER AND SEWERAGE CORPORATION (DAWASCO) Profile Water Utility General Data About Water Utility Tariff Structure Priority of Needs Consumer Service DAWASCO, a state owned Corporation, entered into a Lease Agreement with DAWASA to operate the water supply and sewerage services in the DAWASA service area that include Dar es Salaam and part of Kibaha and Bagamoyo in Coast Region. At the same time, DAWASA that was formed under the DAWASA Act of 2001 remained responsible for strategic planning, asset management and implementation of capital works. DAWASA operation area has a total population of 4,592,454 people while the current served area of the utility has a population of 2,860,149. The current percentage population coverage is 40.7%. The utility draws water from River Ruvu through upper Ruvu and lower Ruvu located in Mlandizi and Bagamoyo respectively, river Mzinga located in Dar es salaam and through thirty boreholes located in various areas within the service area. Only 25% of the total customers receive 24hrs water supply. The utility has a sewerage system with a sewer line of 199 km and sewerage treatment through 8 waste stabilization ponds. The average daily flow into the ponds is 1, 6716m 3 /day (609,915 m 3 /year). Total Water Connections 130,964 Total Waste Water Connections 16,539 Total Staff 931 Annual O&M Costs TZS 55,261,703,945 Annual Water and Sewerage Collections TZS 37,464,386,579 Annual Water and Sewerage billing TZS 44,577,053,000 WATER TARIFF Category Domestic Institutions Commercial Industrial Kiosks TZS./m 3 1,077 1,077 1,077 1, Note : 1. The sewerage tariff is TZS 227/m 3 2. The flat for sewerage tariff was set basing on 80% of the water tariff 1. Reducing NRW; 2. Alternative sources to increase water production in order to meet the demand; 3. Reduction of inactive customers; 4. Increase sewerage network and number of connections to the sewerage network; 5. Increase the collection efficiency; 5. Universal metering. Average monthly consumption is about 20.m 3 per domestic connection, with per capita consumption of 18lts/day. Water is available at an average of 8 hours per day. Water quality compliance to WHO set standards is fair with E-coli having 100% compliance and Turbidity is having 100% compliance. Performance Highlights DAWASCO provides water supply to 40.7% of the population in its service area. NRW is still high at 55.5%. The metering ratio for DAWASCO customers is 93.6%. Operating ratio was at 1.22 Accounts receivables equivalent is 2.2months. Average tariff stands at TZS per m 3 which covers operating expenses. Number of Staff per 1000 active water and sewerage connections ratio is

121 DAR ES SALAAM WATER AND SEWERAGE CORPORATION (DAWASCO) Total Population in the Service Area: 4,592,454 Production/Distribution Average Daily Production 257,845m 3 Production capacity/day 280,500 m3 Treatment type Conventional Storage capacity 84,700m3 Service Area 1500km 2 Length of distribution Network 2,634km Service Connections Total water connections 130,964 Domestic water connections 109,633 Total Sewer connections 21,742 Domestic sewer connections 19,384 Metering ratio 93.6% Service Indicators Water Service Coverage 67.5% Average Service hours 8 Per Capita Consumption l/c/d Average Tariff TZS 1119/m 3 Efficiency Indicators Non-Revenue Water 55.5% Unit Production Cost TZS 1191/m 3 Operating Ratio 1.22 Revenue Collection efficiency 76.9% Account Receivable 2.2 months Staff/1000 active connections 8 Income and Expenditure Annual operating income from water and sewerage services TZS 44,577,053,000 Government /Donor Grants TZS - Amortized Grants TZS - Other income TZS 1,291,378,000 TOTAL INCOME TZS 45,868,431,000 Water Production Expenses TZS 12,035,127,232 Water distribution expenses TZS 9,312,500 Maintenance and Repair TZS 1,455,687,000 Personnel Expenses TZS 9,305,669,598 Administration Expenses TZS 22,097,988,847 Other O&M Expenses TZS 10,357,918,768 Total O&M expenses TZS 55,261,703,945 Depreciation & Amortization TZS 464,032,000 ANNUAL EXPENDITURE TZS 55,725,735,945 ANNUAL WATER USE 94,113,280m 3 ANNUAL WATER AND SEWERAGE BILLING TZS 44,577,053,000 ANNUAL O&M COSTS TZS 55,261,703,